“Don’t have time, month-end closing!“ – Vicious Cycle and No Way Out?

| Point of View

Today, “Sorry, no time, month-end closing, please try again at the end of the month“ or “Unfortunately, we can’t yet say what the results look like, we need to book once more“ are statements frequently made by many back-office and finance departments of utility companies.

This is due to the often invoice-based approach many companies use to determine their financial results, i.e. financial reporting is based on the invoices created and booked upstream. In addition, the data volumes to be handled increase massively, in parts a direct consequence of the new energy policy, e.g. an increasingly fragmented and distributed generation. But also due to a significant increase in the volume and complexity of business transactions. In many cases, this leads to an overburdening of employees at the start of the month and causes delays in financial reporting.