Why your month-end close takes too long, and how to find the bottleneck
A close that drags into the third or fourth week usually has one or two specific causes, not a general lack of effort. Tracing where the days go is the fastest way to shorten it.
Waiting on information
Missing receipts, late vendor bills and unclear project status hold up most closes. If the bookkeeper spends the first week chasing people, the fix is upstream: card policies, bill intake and project updates.
Manual reconciliations
Reconciling accounts from exported spreadsheets rather than bank feeds, or matching payments by hand, adds days. Payroll and payment processors are frequent culprits.
Review with no owner
Sometimes the work is finished but nobody signs off, so the reports sit. Naming a reviewer and a deadline is a simple change, and it means problems get questioned while the month is still fresh.
How to trace it
For one month, write down the date each close step finishes. The longest gap between steps is usually where to start, and repeating the exercise a month later shows whether the change helped.
What to check
- Date the first close step starts
- Which step has the longest wait
- How many accounts are reconciled manually
- Who signs off and when
Free Sam's List diagnostic
Take the free Finance Operations Review. Built by Sam's List. Related Sam's List profile: System Six.
Browse the directory
Frequently asked questions
Will new software fix a slow close?
Sometimes, but only if the bottleneck is manual work the software replaces. Waiting on people or unclear ownership usually needs a process change instead.
Is this finance operations guide advice?
No. Sam's List writes these guides for education. They describe common questions and processes, not advice for your specific situation.
Sam's List is a directory. Listing or paid status does not imply endorsement or ranking.