As your business grows, you may find that with increased transactions, changing regulations and shifting staff, year-end closing becomes more complicated. Don’t worry — there’s help! Year-end close automation can simplify most tasks, saving time, minimizing mistakes and making the whole process less stressful for your team. By adopting the right technologies and tools, with the right professionals to oversee and implement them, automating year-end close can be straightforward and efficient.
Let’s take a look at 10 ways automation can help.
1. data integration software
what it does
Centralizes financial information by automatically gathering and consolidating data from multiple sources into one platform.
how it helps
When it comes to automating year-end close, data integration software reduces manual input. It minimizes mistakes and offers a full financial overview needed (and appreciated) for precise tax reporting. Integrating real-time data updates allows companies to make informed financial decisions throughout the year. This ensures they are better prepared for tax season and reduces the risk of panic that often happens at year-end close.
popular tools
Consider using platforms like Tableau, Microsoft Power BI or Alteryx for effective data integration.
2. expense management system
what it does
Tracks and categorizes business expenses by recording receipts, sorting expenses and generating detailed reports for tax deductions.
how it helps
This ensures all deductible expenses are included, simplifies documentation and accelerates the overall tax preparation process. Automated tracking not only helps identify spending patterns but also optimizes budgets. As a result, you can cut unnecessary expenses, increasing profitability.
popular tools
Tools like Expensify and SAP Concur can facilitate this process.
3. payroll tax automation
what it does
Handles payroll-related tax calculations by calculating, withholding and reporting payroll taxes automatically throughout the year.
how it helps
Automating payroll tax significantly reduces compliance risks, enhances reporting accuracy and simplifies year-end tax form generation. This technology ensures precise calculations for withholdings, contributions and deductions, minimizing errors and maintaining consistency. Ultimately, payroll tax automation not only ensures regulatory compliance but can also boost overall operational efficiency. This provides businesses with a competitive edge in managing their financial responsibilities.
popular tools
Try ADP, Paychex or Gusto.
4. tax form generation software
what it does
Creates required tax forms by automatically filling and generating various tax forms using integrated financial data.
how it helps
Using this software saves time, minimizes manual mistakes and ensures alignment with the latest tax form requirements. Customizable templates enable businesses to easily adapt to changing regulations, maintaining compliance without significant manual effort or stress.
popular tools
Software like Intuit ProConnect or TaxSlayer Pro are helpful.
5. document management system
what it does
Organizes and stores tax-related documents by digitizing, sorting and securely storing them for easy access.
how it helps
It streamlines document retrieval, enhances audit readiness and improves communication among team members and tax professionals. Advanced search functionalities provide quick access to necessary documents and save time during audits.
popular tools
Consider platforms like Docusign, M-Files or SharePoint for effective document management.
6. tax compliance calendar
what it does
Tracks essential tax deadlines by providing automated reminders for tax-related due dates and filing requirements throughout the year.
how it helps
A tax compliance calendar helps with timely submissions, mitigates the risk of penalties and helps manage the overall tax schedule, especially at year-end close. Integrating compliance calendars with project management tools helps make sure everyone is up to date and responsible for their tax-related tasks.
popular tools
Use tools like TaxAct, Xero or QuickBooks for managing compliance calendars.
7. automated reconciliation tool
what it does
Matches financial records by comparing and reconciling data from various sources to automatically detect discrepancies.
how it helps
Automation here assists with financial reporting accuracy, reduces manual reconciliation time and helps identify potential issues before year-end close. Real-time reconciliation provides valuable insights into cash flow trends, allowing businesses to make strategic decisions and improve their financial health throughout the year.
popular tools
Consider solutions like BlackLine, Prophix One or FloQast for automated reconciliation.
8. machine learning for predictive analytics
what it does
Analyzes historical data patterns to provide forecasts about future tax liabilities and financial performance.
how it helps
By employing machine learning algorithms, companies can identify trends and anomalies that inform tax strategy and budget allocation. Predictive analytics allows businesses to proactively adjust their financial strategies so they can remain agile in response to evolving market conditions and regulatory changes.
popular tools
IBM Watson or Google Cloud AI can help with predictive analytics.
9. automating accounts payable and accounts receivable
what it does
Digitizes and automates the entire invoice and payment process, from receipt through approval and payment.
how it helps
This improves cash flow management and enhances supplier relationships by ensuring timely payments. Automation reduces processing times, allowing finance teams to focus on strategic tasks instead of manual data entry.
popular tools
Solutions like BILL, Tipalti or AvidXchange can streamline these processes.
10. optimizing asset and inventory management
what it does
Tracks and values assets and inventory through automated systems that manage their lifecycle.
how it helps
Accuracy in tracking lets companies make more informed decisions about purchasing and resource allocation, ultimately leading to cost savings.
popular tools
Consider using platforms like Asset Panda or SAP for effective asset and inventory management.
count on the professionals
Are you preparing for 2024 year-end close and looking to improve the process for future years? At Randstad, we have expertise in the latest automation tools and are available to lead and support your team during this busy period.
Hiring skilled finance professionals can make a significant difference in ensuring your year-end close is efficient and accurate. These specialists can help identify potential issues early, streamline processes and reduce the stress on your existing staff. With their guidance, you are better able to overcome challenges, meet deadlines and focus on strategic decisions for the coming year. Contact Randstad today to find out how we can work together.