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Closing the books

Software has taken over parts of the close. It has not taken over the judgement.

Bookkeeping automation is usually sold as though the whole month-end disappears. In practice it absorbs some steps almost completely, helps a little with others, and leaves a few exactly where they were. Knowing which is which is the difference between a tool that saves time and one that just moves the work somewhere else.

The close, step by step

In the order it happens, with what software can realistically take.

01

Getting the transactions in

Bank and card feeds, receipts, invoices raised and bills received, all landing in one place for the period.

What software takesMost of it. Feeds and capture are the maturest part of the category.
02

Categorising

Assigning each transaction to an account, consistently enough that the reports mean something later.

What software takesA large share, improving with history. The exceptions still need a person.
03

Reconciling

Making the books agree with the statements, and chasing down whatever does not match.

What software takesThe matching, largely. The investigating, not really.
04

Adjustments and accruals

Prepayments, depreciation, anything that belongs in this period but did not happen to move cash in it.

What software takesRecurring ones, once set up. Deciding that one is needed is judgement.
05

Reviewing and signing off

Reading the result and asking whether it describes the month that actually happened.

What software takesVery little. This step is the reason the others are done.

The pattern is consistent: the further down the list a step sits, the less of it automation absorbs. That is worth knowing before buying, because the pricing rarely reflects it.