The close process: what can keep accountants up at night
The month-end close process is something that accountants around the world are weary of. Even the most organized accounting department knows that there will invariably be last-minute surprises, and that deadlines sneak up on you much quicker than you expect. Moreover, with ever-changing accounting standards – and even updates to existing standards – making sure you’re on top of everything is an ongoing challenge.
Is there a way to reduce the stress, the cost, and all the other headaches associated with the close process?
Now, there is. By teaming up with FloQast, Trullion brings relief to accountants and accounting departments everywhere, who can now streamline the close process thanks to some pretty incredible technology.
FloQast and Trullion
Before we dive in, it’s important to introduce the central characters. FloQast helps companies streamline accounting workflows, and has its own proprietary close tool created specifically to streamline the close process.
Trullion, which offers world-leading AI-powered accounting software, has created a market-leading lease accounting sub ledger.
These two complementary tools are used at different points of the close cycle, and together comprise the most innovative tools on the market.
The purpose of this piece is to help companies with their revised close process as it relates to lease accounting – that is, once they have implemented FloQast and Trullion’s solutions.
As you’ll see, the difference between what would have had to be done without these solutions in place, and how the close process is performed with this in place, is incredibly large.
Getting started: a checklist for a smooth lease accounting close process
Post-adoption month-end close checklist for lease accounting
- Validate new leases
- Email to confirm new leases each month
- Embedded lease testing
- Finance vs. Operating lease testing
- Reporting exceptions (short term or low value)
- Separating lease & non-lease components – maintaining the decision and control from adoption
- Book amortization/adjust accruals
- Consider the effect of mid-month amort.
- Tie lease assets ledger to GL
- Review for modifications:
- Renewals
- Mid-month modifications
- Impairments
- Terminations
- Updated inventory account for equipment leases
- Reconcile FX translations
- Break out the post based on pre-close, mid-close, post-close activities
- Pre-Close: Validate new leases
- Mid-Close: Adjust accruals
- Post-Close: Reporting/disclosures
Leverage FloQast and Trullion to do the heavy lifting
Technology has made so many manual processes infinitely easier. This applies to our lives in general, but even more to accounting in particular. And while the industry as a whole has been slow to adapt technologies like AI and machine learning, companies like FloQast and Trullion have effectively packaged solutions with these features to create immediate value for users.
With these solutions in place, the close process doesn’t need to be overcomplicated, stressful, or costly. To find out about getting started, contact the Trullion team or FloQast team to learn more about these products.
