The month-end close has long been a pain point for finance teams. Notoriously time-consuming, this process includes recording, reviewing, and finalizing all of a company’s financial transactions at the end of each month. Traditional methods for closing the books involve manual spreadsheets, email chains, disconnected systems across different departments, and transaction reviews.
Even in the modern business world, with so many companies leveraging technology to assist with financial processing, the month-end close is still a time-consuming task. For many companies, this process can take a week or longer. By effectively leveraging business process automation (BPA) and artificial intelligence (AI) tools, companies can cut days off the cycle.
The Current State of Month-End Close
Let’s take a look at what companies typically face in terms of the month-end close. According to the Ledge 2025 Month-End Close Benchmark Survey, 50% of companies still take more than 6+ days to complete month-end close. Only 18% of the surveyed companies were able to close in 1-3 days. Closing in 2-5 days is a common goal, but it’s not one that most companies have been able to achieve.
This same survey also examined obstacles standing in the way of faster close. By far the most time-consuming part of the process is cash reconciliation. Other challenges include cross-team dependencies, problems with Excel-driven processes, inefficient legacy systems, identifying and correcting errors, and gaps in staffing. The majority of companies are still using Excel for financial processes even though it’s a terrible tool for this type of work. Excel and other legacy systems are standing in the way of speeding up the month-end close.
Modern finance teams that are leveraging technology to speed up month-end close are seeing significant improvements. According to an article published by Numeric in 2025, companies that once took 10+ days to close are now managing to close in 3-5 days with the assistance of modern technology. Similarly, a recent MIT/Stanford study revealed that judicial use of AI by skilled accountants can cut 7.5 days off the month-end close.
Increasing Speed and Accuracy
Speed isn’t the only factor to consider in relation to the month-end close. There’s no point in speeding things up unless you can also maintain accuracy. At the end of the month-end close, the numbers need to accurately reflect the company’s real financial position.
BPA software helps your company improve both speed and accuracy. In the accounts payable department, for example, automation reduces the average cycle time from 8.6 days to 5.4 days. Invoices with purchase orders (PO) already in the system are typically matched and processed in 12 hours or less. In addition, when switching from standard invoice processing to high levels of automation, the average company will see a 20-25% reduction in invoice errors.
Similarly, BPA software supports faster turnaround time for the month-end close while maintaining a high level of accuracy. Automation software speeds up financial processing, reduces errors, and collects timely, accurate, and accessible data. It can also automate a large portion of the reconciliation process, and you can customize the software to alert human employees about transactions that require manual reconciliation. These features all make it easier to close books faster.
5 Ways To Speed Close
1) Centralize Financial Data
Having financial data siloed in different software programs or departments slows down the month-end close. In contrast, implementing an end-to-end financial processing solution that integrates seamlessly with your ERP system centralizes financial data. With all your data in one place and stored digitally, it’s much easier to access complete and accurate financial data. You can also reduce Excel dependence and minimize human error.
2) Automate Reconciliations
With BPA software, you can automate reconciliations and approvals. The system auto-processes most transactions and flags exceptions for manual review. This dramatically reduces the amount of time employees need to spend on reconciliations and approvals. Plus, BPA systems that incorporate machine learning technology become more efficient the longer you use them, as the system “learns” your preferences and policies.
3) Embed Controls and Compliance
When you implement a system like NextProcess, we work with you to customize the software to automate transactions according to company policy. You can build controls and compliance directly into the software system. The system also builds audit trails automatically, keeping your company audit-ready and policy compliant.
4) Implement Continuous Close
BPA systems allow your company to implement “continuous close.” Companies that implement this practice close certain processes daily or weekly. This spreads out the work of a month-end close so that the final close can happen much more quickly. There’s no mad scramble at the end of the month because the work of reconciling, monitoring, and closing happens incrementally.
5) Align and Cross-Train Teams
Despite all the technology advances empowering modern businesses, investing in your team is still one of the best things you can do. This includes training them on how to leverage any AI tools and automation systems that your company chooses to implement. Make sure everyone is on the same page about how and when to use technology, as well as timelines and expectations for close. It also helps to document workflows and cross-train team members so everything doesn’t fall apart if one person can’t be there for the month-end close.
NextProcess for Efficient Finance Teams
NextProcess software modules streamline and centralize financial processing, supporting fast and accurate month-end close. Real-time dashboards help CFOs track close progress and identify potential issues early.
Flexible software solutions from NextProcess let you customize BPA to your company’s needs. We’ll work with you to incorporate custom policies, tolerances, reconciliations, and permissions into the automation system. Contact us today to learn more and schedule a free demo to see how NextProcess can help your company shave days off your month-end close.
