When it comes to your financials, closing the year can seem like an overwhelming task. With abas ERP, though, this process can be made easy.
abas ERP allows you to close your books in period 12 just as quickly any other month, using the same month-end checklist you use for the other months of the year. Using the tools and functionality in abas, such as automated accrual of liabilities, automated reversing entries and automated recurring entry templates make the month-end process both fluid and efficient.
Keep it short
If your month-end close cycle is longer than 3 days, you should consider having an abas consultant pay a visit to conduct a process review. An abas expert can help you shorten your month-end close cycle and ensure you are getting the most out of your ERP investment.
Closing the books on time not only frees up your senior management team to focus on growing and managing your business, but also gets operational-based financial results quickly into the hands of decision makers throughout the organization. When financial results are distributed in a timely manner, decision makers can better relate results to activities in the prior month while it’s still fresh in their minds. This allows your company to react faster to business challenges and engage in corrective courses of action as needed.
What comes next
Once you’ve closed month 12, abas provides periods 13, 14 and 15 for your typical year-end entries and adjustments. Items such as year-end profit sharing accruals and trueup of accrued tax obligations can be made in period 13. Adjustments can also be made within abas in period 13 post year-end without compromising the management financials published for period 12.
Once the annual audit is complete, any adjustments recommended by the outside financial review can be booked in period 14. Finally, once the fiscal year financials are signed off, period 15 can be used to hold the year-end retained earnings entry.
The year-end close process in abas ERP is streamlined, provides clear visibility to post year-end entries, and allows you to close your books in period 12 just as quickly as other months. This provides your management team with timely information they need and instills confidence in your financial team.