How to Prepare Your Bookkeeping Practice for Month End Close with Workflows and Systems
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Let’s talk month end close for a minute. How do you feel about it? Do you ever feel like the first 10 days of the month are just such a struggle?
If you are like a lot of bookkeepers, including me at the start of my practice, the beginning of the month is stressful. Why does this happen?
It could be a combination of reasons, but here are the most common:
Clients don’t get their documentation to you in time
Your project management system isn’t optimized to its potential
Your workflows and systems are messy or non-existent
I always hear stories from bookkeepers about how the first ten days of the month are the worst. You are trying to close out each of their client’s books for the previous month, and it’s rarely a smooth process. Month end close is something that has to be done frequently and often, so why not make it as simple and streamlined as possible?
Efficient systems will help you take the dreaded month end close from a struggle to a triumph. By eliminating bottlenecks, you can execute client work in a fraction of the time.
Want to see how? Keep reading.
Bottleneck Number One: Missing Documents
How many times do you find your client work at a standstill because you are waiting on clients to turn in a document, send over checks, or get you a bank statement? This is a common struggle among bookkeepers and often the most frustrating because there is little you can do to expedite the process.
Or is there?
Here’s the reality: Sometimes we accidentally make it hard for our clients to hold up their end of the bargain. Think of it this way, they are super busy running their business. So instead of holding them responsible for figuring out how to turn in their documents, give them that extra level of service that truly goes above and beyond.
Take a look at your system for retrieving client documentation. Is there any room for improvement?
Analyze your current process to see if you can find ways to increase efficiency in your month end close workflow.
Make sure you can:
Easily access the client’s bank accounts
Don’t have to chase the client down for receipts, checks, etc.
Set up your client, and yourself, for success with clear action steps
In my firm, we always provided Hubdoc for our clients and covered the cost each month. Some people disagree with this tactic. I know it may seem counterintuitive, but I’m telling you that it will make your life so much easier! The cost is worth it when you take into consideration the amount of time saved and the headaches avoided.
Some bookkeepers prefer to set their clients up with a portal from Google or Pixi. These are all great options, just make sure you use whatever makes the most sense for you and your practice.
Bottleneck Number Two: Lack of Project Management
It’s no secret that I am a HUGE advocate of Asana and the many ways it can truly transform the way you run your practice.
I feel strongly about Asana for a good reason. Asana gives me the opportunity to lay out my workflows in a way that makes them mistake-proof. I never have to worry about missing a deadline or skipping a step in my workflow because it’s right there in Asana.
Month end close is a perfect task to house in Asana because it is something you likely perform for every client, every month. It also has a LOT of steps involved, so implementing a project management system will eliminate the stress of forgetting any piece of the puzzle.
Note: Want to learn more about how I’ve helped 600+ bookkeepers and accountants embrace and apply Asana to their practice so that they can organize, automate, and scale seamlessly? Check out my signature course: Kickoff with Asana for Bookkeepers & Accountants.
Here is an example of my month end close experience:
I used to perform month end close from memory, while chasing my clients down for documents, without a workflow in place. I struggled to get month end close complete by the 10th of the month and it cost me a lot of time and energy.
After implementing a project management system (aka Asana), providing my clients with Hubdoc, and developing an efficient workflow for month end close, I was able to complete the task by the 5th of each month. Yes, sometimes things came up that were out of my control, but that is why it was so important to have an ideal completion date with a buffer before your hard and fast deadline.
When I was consistently getting month end close done by the 5th of every month instead of the 10th, that left me with five whole work days of extra time to spend growing my practice and serving my clients at a higher level. Not to mention the sanity it saved me, which is priceless.
Bottleneck Number Three: Inefficient Workflows
Before I had workflows for my bookkeeping practice, I was doing everything from memory. If you are just beginning your bookkeeping journey, I highly recommend setting up your workflows before you bring on clients. This will alleviate the struggles that come with managing the client work, and you will be able to scale with ease.
That said, if you have been in business for a while already, it is never too late to learn how to develop workflows to implement in your practice.
Note: Want to know more about how I’ve helped bookkeepers and accountants overcome the stress of managing client work by developing efficient workflows for their practices, check out Workflows in a Weekend for Bookkeepers & Accountants!
If you are getting ready to perform month end close for your clients, you want to be prepared. Imagine you had every single step required to perform month end close laid out in an easy to follow steps. Do you imagine you would be able to execute the work SO much faster?
I can tell you from experience that you absolutely can.
Month end close is one of those tasks that has a lot of moving parts, and a lot of importance attached to it. As a bookkeeper, serving your clients at the highest level is what keeps them loyal and ensures the recurring revenue needed to stay in business.
One thing I want you to consider when you are performing tasks (like month end close, for example) is if YOU are the one who should be executing the work. Whether you are a solopreneur or you have a team, I highly recommend setting yourself up to be able to pass tasks off to a contractor or employee.
Remember the story about how I was able to complete month end close for my clients by the 5th of each month with the help of workflows? Now imagine I pass that exact workflow off to a contractor.
I’m no longer performing month end close at all, simply checking over the work once it’s complete. That means I have five whole days to focus on anything that needs extra attention. Networking, social media, or personal tasks - whatever I need!
Do you see what kind of transformation you could achieve by implementing workflows in your practice? No more performing month end close, reconciliation, pulling bank statements, etc.
If you aren’t ready to outsource just yet, that’s ok. But I do encourage you to set up your workflows so that when you are ready, you can pass them off seamlessly!
Trust me, putting in the work upfront to create workflows will save you so much time in the long run.
If you aren't sure where to start with creating workflows, or you feel crunched for time because of your current client load, check out my course Workflows in a Weekend for Bookkeepers & Accountants.
So tell me, how do you handle month end close in your practice?
Pop into my free Facebook community and let me know!
