Problem guide
Month-end close takes weeks
Month-end close drags when the information accounting needs arrives late, arrives in the wrong shape, or has to be chased and corrected before it can be booked. The lasting fix is to have field and job information reach accounting complete and in the right shape during the month, so the close is a review, not a rescue.
What it usually looks like
On the first business day of the month, the controller starts closing the books. Half the technicians' timesheets are still missing. A stack of supplier bills cannot be matched because nobody has confirmed the deliveries. Two large jobs have change orders that were never approved in writing. She spends the next two weeks sending reminders, retyping late tickets and waiting on a project manager who is always on a site. When the close is finally done, the owner gets last month's numbers just as the current month is nearly over.
Signs you have this problem
- The books for last month are still open well into this month
- Accounting chases timesheets, job tickets and receipts at month end
- Vendor bills sit unmatched because nobody can confirm the work or delivery
- Job costs are adjusted after the close because late information arrived
- The owner makes decisions from numbers that are weeks old
What usually causes it
- Timesheets, tickets and receipts are retyped into accounting in a rush at month endThe re-entry trap
- Mismatched bills, credits and unusual jobs pile up and are all handled at the endThe exception swamp
- Items waiting on a manager's approval hold the close openApproval drag
- Information from the field reaches accounting late because nobody owns sending itThe handoff gap
What to try this week
- List what holds the close openAt the next close, write down every item accounting waited on, who it came from and how long it took. That list is your map.
- Measure your own closeRecord the date each close actually finished. Track it month over month so you can tell whether changes help.
- Move the chase into the monthSet a weekly cutoff for timesheets, tickets and receipts instead of waiting for month end. Small weekly gaps are easier to fix than one large one.
- Clear exceptions weeklyKeep one list of unmatched bills and odd items, and work it every week so they do not all land at the end.
- Name an approver and a deadlineFor every item that needs approval, write down who approves it and by when. Follow up on anything past its date.
Where do-it-yourself stops
These steps spread the work across the month and show what holds the close open. They do not remove the retyping and chasing that create the backlog in the first place. A lasting fix is a tool built around your own field records and your accounting system, so job information arrives complete and in the right shape as the work happens, without retyping. That is what a Workflow Spec designs.
Questions people ask
Why does our month-end close take weeks?
Usually because accounting is waiting on information from the field and from managers, and then has to retype or correct it before it can be booked.
Is it an accounting problem?
Mostly not. Accounting is where the delay shows up, but the causes are usually upstream, in how field and job information reaches the office.
Will more accounting staff fix it?
More people can chase and retype faster, but the chasing and retyping remain. Find what holds the close open before adding people.
What does a slow close cost?
Decisions made on old numbers, job costs that are wrong until late, and office time spent chasing. Measure your own close before putting a cost on it.
What should we fix first?
The input that shows up most often on your list of items the close waited on. It is usually timesheets, job tickets or vendor bills.
Next step
How we fix this
This guide is how to find it and work around it. If it keeps coming back, the fix is usually a tool built around how your crew already works.
Fox & Santiago, Genesee, Idaho. Home territory: the Inland Northwest, where we respond fastest. We fly anywhere in the United States for paid engagements.