Charity finance: your month-end checklist

The month-end close is a critical yet demanding process, particularly for charity finance professionals. More than four in five finance leaders report working six-day weeks, according to research from financial software providers AccountsIQ. Nearly 30% identify financial reporting accuracy as a major concern. For those managing finances in the charity sector, the month-end close can become a continuous cycle of playing catch up due to incomplete or inaccurate data.  

The stakes here are high. Charities are under significant scrutiny from their audiences, who want to trust that the organisation they support is behaving responsibly with its finances. Yet poor data and limited time can often conspire to make life more difficult for charity finance professionals. Outside of the charity sector, a recent Gartner survey revealed that 18% of accountants make financial errors daily, while 59% report multiple mistakes each month. These errors not only undermine financial accuracy but can also compromise regulatory compliance and decision-making. 

However, by optimising processes with automation, charities can drastically improve month-end efficiency, minimise errors, and free up valuable time to focus on delivering impact. 

To make the process simple, AccountsIQ has supplied charities with a practical month-end checklist,  guiding them through everything from gathering initial data to analysing trends and closing the books. The checklist offers advice on eliminating wasteful processes, increasing efficiency, and creating insightful reports for both internal and external audiences. 

Below, we explore some of the key advice shared in the guide to make month-end reporting easier, from consolidating data to conducting a final review.  

Steps for effective month-end reporting (and how technology can help) 

1. Bring data together automatically

A successful month-end begins with a clear financial overview. For finance teams managing multiple income streams and funding sources, bringing data together can be a complicated process – and one that is prone to mistakes.  

Cloud accounting software can make the process easier and speedier with automation.  For example, automated bank feeds eliminate the need for manual uploads, with all information going directly into your software, reducing both workload and potential for error.   

By automating transactions, data is imported from various sources into one central location, giving charities clearer insights and more time to inform strategic decisions. 

2. Automate reconciliation and cross-checking

Now that all data is in one place, the next step is making sure it’s accurate. That means reconciling figures across multiple records, which can be challenging, particularly if a variety of currencies and funding sources are involved. 

Automated reconciliation tools can help charities overcome this challenge by analysing financial data and matching transactions seamlessly. Indeed, Gartner research shows that high technology adoption leads to a 75% reduction in financial errors, meaning that charities can be confident that their reporting is consistent, compliant, and error-free.  
 

3. Prepare financial statements and conduct a final review

Accurate month-end reports are crucial for charity leaders to assess financial health and make informed decisions. Automated reporting tools generate real-time financial statements, giving trustees and financial professionals accurate and timely updates. If things are going well, they can double down on what’s working; if things are not, it might be time to change course.  
 
Modern accounting platforms auto-generate reports directly from live data, preventing a lengthy, laborious reporting process. Charities can bring together data from multiple entities, such as different programmes or fundraising appeals, to provide leaders with the bigger picture of their financial health, simplifying complex financial structures for ease. 

After the month-end close is complete, automation also ensures updates are immediately reflected in reports, reducing discrepancies and ensuring leaders always have the relevant information they need to make decisions. 

Achieving an error-free month-end close is difficult without the right tools. But with the right accounting software, charities can improve accuracy while reducing the time spent on month-end tasks. Automated processes ensure data is captured, reconciled, and reported efficiently, giving finance professionals more time to focus on strategic priorities.  

To simplify your financial processes and enhance reporting accuracy, explore AccountsIQ’s comprehensive month-end checklist below.