How automating the accounting close cycle impacts business decisions

Businesses benefit greatly from timely budget updates from its CFO, as each of its departments rely on accurate expenditures to determine how much is left in the remaining budget to guide their project and staffing decisions.

Every month or quarter, your CFO will provide financial reports to the other departments to assist them in determining if their spending is in-line with their budget — which will help them decide on answers to typical questions:

Is there enough room in the budget to add more staff or resources to achieve our annual goals?

Are there sufficient funds to take on additional projects?

Do we need to have a conversation with staff as to why we are over budget?

Your corporate accounting team, usually within the Controllership organization, gathers expense information from month-to-date activity and vendor confirmations and estimates from internal business partners if invoices have not been submitted.

The faster accounting can get that end-of-month expense report to the Finance team, the faster the Finance team can analyze and forward their financial reports, and the faster each department can make pressing strategic decisions.

While accounting may be lucky enough to work with vendors that (sometimes) give them the exact financial accrual confirmations that they’ll need, when they need it, but that’s not usually the case. Without automation, the collection of these unbilled expenses can be slow, tedious and even complex depending on the number of vendors and transactions that need to be accounted for.

Without an automated solution, seasoned accountants can find themselves:

Manually chasing down a multitude of vendors on the phone or via email to find missing expense info that needs to accrued in that month.

Manually chasing down budget owners or department heads for spend estimates if vendors are not responsive.

This often results in the accounting team taking more time to provide information back to Finance or working longer hours and weekends to meet expected close deadlines.

Watch this webinar replay to learn how you can leverage automaton to shorten your close cycle with Gappify:

Webinar replay for Best Practice Accrual Process from Sikich & Gappify.

Gappify | Sikich Best Practice Accrual AUTOMATION Process

Watch this short Gappify | Sikich webinar replay and learn how to sequence your accrual process, and leverage accounting automation to shorten your month-end close.

Finally, an automated solution can not only shorten the close cycle, but reduce manual errors that can put your company at risk of:

  • Making bad managerial decisions based on expense misstatements
  • Wasting valuable time and resources on restating the financials
  • Getting into hot water over financial misstatements — especially for publicly traded companies

What’s the solution?

The best way to avoid these common financial reporting headaches is to leverage technology to automate your accounting close cycle processes.

Using Gappify accrual automation can shave days off the close cycle, help you avoid errors, and strengthen SOX compliance. In other words, it’s faster and more accurate than the current industry standard of manually accruing for expenses throughout the end-of-month accounting process.

Empower your accounting teams to spend more time on the work that matters, by using Gappify’s Accrual Cloud suite to automate your organization’s entire accrual process, from start to finish.

Want to learn how Gappify can automate your accrual process? Book a demo with our team and we’ll show you how!

Todd Cary
Product Expert
Gappify, Inc.

About Gappify

Gappify, founded in 2016, is a cloud-based provider of accrual automation solutions for mid-market and enterprise accounting teams. The company is headquartered in New York City, with offices in Berkeley, California, Washington DC, and Manila, Philippines.

Its team consists of accountants and CPA’s from Big Four accounting firms and software innovators. Gappify is also supported by strategic advisors from some of the world’s most recognized technology companies and is affiliated with the top companies & accounting organizations.

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