Expecting the Unexpected in Month End

It happens every month. We close out our system to tell us what happened. Only problem is we get there and we don't believe what we see. We have heard it over and over again….usually at month end. Why does this report say we had low profit? Why does my cash not add up? Our A/R balance is what? That can't be….. 

Problem is that they are right and they are wrong.  

Month End is one of those processes that is as old and repetitious as time itself. As long as accounting has existed, businesses have been closing their months, quarters and years. We expect everything to go smooth and yet we always know we are going to get blindsided by……something. Why is that? Usually it comes down to one of three things, people, processes or data. It can be something as simple as hanging un-applied cash not being moved over to invoices or a ticket not being assigned to an invoice that throws off cost of goods. Sometimes it is more in depth like an employee who had a typo of a recent purchase order where drug cost went up 1000%.  

A customer recently asked MedEdge to help with their month end. It was seeming straight forward in nature, we produce reports automatically and they see where they are at all times. WRONG. They had serious issues and only knew it because their COGS went from 45-50% to over 85%. Read that again…..  Their COGS went WAY up! 

Imagine thinking your business is going to hell in a hand basket and really it's just an employee or two who don't have visibility to the right data to do their jobs effectively. Did you just get goosebumps or that feeling of cringing realization that you're not alone? If you are running your business blind to the data, then being blindsided at month end, it's as Thanos would say "inevitable". 

The fact is, with the right people, process and technology you can monitor your business on a daily basis and make month end a snap.