Closing the books at the end of each month is the bane of every accountant's existence.
That said, it has nothing to do with the consolidation of huge volumes of figures from across the entire organization: these are accountants, after all, they love that stuff.
The problem is that the process is highly manual, disjointed, and error prone. Information is often incomplete, requiring chasing and countless back-and-forth emails. Even once the information is finally complete, it is typically scattered over a number of different spreadsheets and systems.
Put bluntly, it is tedious, non-value-added work that is universally disliked. Glean AI’s here to the rescue!
Your month-end close ensures that your bank statements reconcile with what is in your general ledger. Because Glean AI is the source of record for all bills, payments, accruals and payables, the Glean system can make your month-end a breeze.
Here are 7 amazing things Glean AI does to simplify and improve your month-end process:
1. AP AGING RECONCILIATION: Glean AI is able to tell you at-a-glance which vendors you owe, how much you owe them, and how many days past due the invoice is. In fact, Glean can, with a click, create a payable aging report, sorted by vendor or internal approver.
2. AUTOMATING PREPAID AMORTIZATIONS: In order for financial statements to be accurate, prepaid expenses have to be accurately amortized to the period for which they apply. Glean handles this for you automatically, every month based on a schedule you set.
3. DEPRECIATING FIXED ASSETS: Glean easily applies the appropriate depreciation expense over the useful life you define. The system is able to tell you for any given month where you are in the schedule and the balance outstanding.
4. IDENTIFYING ACCRUALS: Glean is able to identify the vendors that bill on any type of fixed schedule, be it weekly, bi-weekly, monthly, quarterly, etc. At the end of each month, Glean checks to see if these vendors billed per normal, letting you know if they didn’t. This gives your accounting team the opportunity to find a missing invoice - even before it was lost.
5. FLAGGING OUT-OF-PERIOD BILLS: Just because an invoice was received and paid in May, it doesn’t mean the expense was incurred in May; after all, it could’ve been a pre-payment for June services or a delayed payment for April services. Glean AI looks at invoice dates and service dates and books the expense accordingly. This ensures you are always booking expenses for the correct period.
6. EXPENSING VERSUS CAPITALIZING: Deciding which business payments are expenses and which should be capitalized is not a flip-of-the-coin type decision. There are very specific accounting rules on this topic, and without context, an accountant is forced to either chase after vendor details (time-consuming) or just guess (also bad). One common example is outsourced engineers building or enhancing a product – these should not be expensed, as it is work that should get capitalized. Using Glean AI, all of these details are set out in the system and automatically applied each month-end - there’s no chasing and no guessing.
7. USING CORRECT EXPENSE CATEGORIES: Do you split your AWS bills into different expense categories? Do you allocate rent to different departments? Or do you struggle with determining the right categories to allocate expenses? Glean AI breaks down every invoice at the line-item level, allowing you to split bills easily and ensure proper accounting of your expenses. This fine level of detail ensures your company’s financial records are as accurate as possible.
Glean AI provides a platform for automating your month-end process and facilitating any conversations that need to happen to finalize your month-end reports. In today’s fast-moving and highly competitive business environment, no business can afford the wasted time and effort of an old-school, heavily manual, month-end close. Never mind the fact that it happens 12 times a year.
Contact us today to learn more about Glean AI and what we can do to reinvent your month-end close process. Your accountants will love you for it.
Contact Glean at firstname.lastname@example.org to have a chat about our platform or call us to book a demo.