2022 Trends for Why Companies Need Close Management in 2023

In a post-pandemic world, remote work is here to stay

When the entire accounting team was together in the same location for at least 40 hours / week, managing the close process the old-fashioned way had a chance to work. 

A shared spreadsheet, regular huddles, yelling over the cubicle wall, or hunting someone down in the break room was inefficient, but it was familiar and felt like collaboration, however inefficient.

In 2022 and beyond, physical presence among team members is much less consistent, everyone is distracted on Zoom, the volume of email and noise on Slack is overwhelming, yelling over the wall concerns the neighbors, and hunting someone down at their house really freaks out your colleagues. In short, the old methods are no longer feasible. As a result, strategic, forward-thinking companies will provide the tools necessary for the accounting team to collaborate effectively to accelerate the monthly close process.

In a tight labor market, employee satisfaction and engagement are extra important

Employee satisfaction and engagement are always important, but in an environment of increasing employment options, it’s critical that companies do all that they can to provide meaningful and strategic work. The more employees think, “There has got to be a better way!”, in the course of their average work day, the more they’ll be inclined to pair that thought with, “There has got to be a better company to work for where I can make good use of my time, learn valuable new skills, and add more value to a worthwhile cause.”

In reverse, the more that employees see their employer investing strategically to elevate their role and maximize their time, the less likely they are to search for greener pastures. The best leaders will recognize that they’ll increase their chances to retain their most valued employees not just with competitive wages and benefits, but by eliminating a manual, soul-sucking, weekend-killing monthly-close process.

In an uncertain economy, controlling what you can is a great start

Things are getting crazy out there – from global inflation to rising interest rates to an uncertain geopolitical climate. And the ability for any one company to even influence those types of challenges is something close to absolute zero. That’s why it’s essential for companies to control what they can – implementing month-end close automation technology and accompanying procedures that promote compliance and trust. Committing to and delivering a prompt, efficient, and thorough monthly close process facilitates so many good things:

1. Trust increases in every direction as financial results are timely and accurately released
2. The accounting department is freed up to answer not just the “what”, but to analyze the more important “why” questions
3. Executives and key stakeholders are able to make better, faster, data-driven decisions to secure a profitable future for the organization
4. Auditors are happy and efficient as they have the information they need at their fingertips

In summary, 2022 / 2023 is a perfect opportunity to automate your monthly-close process. In fact, there may never be a better time to do so! Reach out to RKL and FloQast to learn more.