Process: Oh No, Tomorrow is Month End. Already!
Last day of the month – If you don’t have your depreciation entry done and posted already, you missed cutting the closing cycle time. Now say out loud “It’s ok to post an entry before month end.” Most organizations don’t purchase the asset and start depreciation in the same month. Typically there is a one month delay. So why not post the entry today? You might just shorten the month end close and that’s what this is all about. Does the monthly close stress you out? It does not have too. You just need to look at the process differently. In lean thinking, there is emphasis on mistake-proofing assembly of components in a manufacturing environment. How is that different from a month end process or a service call for service based businesses? Define what you want, aka the outcome. Do you want an easy, stress-free on-time monthly close? How about an interaction with a customer that leaves them delighted? Then write down specifically what you want to occur. Then following the guidelines suggested in this blog and move towards doing that. It won’t happen by itself. Pick NOW to start, don’t wait.