For many growing Dental Service Organizations (DSOs), the month-end close process can feel overwhelming, akin to running a marathon at sprint speed. Multiple locations, diverse systems, and intricate consolidations compound this challenge. As a result, finance teams often find themselves working late into the night to meet reporting deadlines. However, it is possible to complete the month-end close in half the time while enhancing accuracy and gaining deeper insights.
The True Cost of an Inefficient Close
Before we explore the solutions, let’s first acknowledge the hidden costs of an inefficient close process for your DSO:
- Delayed decision-making due to untimely financial data.
- Increased risk of errors from rushed work.
- Staff burnout and potential turnover.
- Limited time for strategic analysis.
- Compliance risks from rushed review processes.
Five Strategies for Faster Close
⇒ Implement a Rolling Close Process
Instead of cramming everything into the first week of the month, adopt a continuous close approach that involves:
- Reconciling key accounts weekly.
- Processing fixed asset additions and depreciation throughout the month.
- Reviewing and posting recurring journal entries as early as possible.
⇒ Standardize and Document Procedures
Create a detailed close checklist that includes the following:
- Task assignments and dependencies.
- Required Documentation.
- Clear review protocols.
- Timeline expectations.
- Common troubleshooting solutions.
⇒ Leverage Technology Effectively
Modern financial tools can automate many time-consuming tasks through:
- Automated bank feeds and reconciliation.
- Integrated practice management system data.
- Automated intercompany eliminations.
- Real-time consolidation capabilities.
⇒ Establish Clear Communication Protocols
- Regular stakeholder updates during close periods.
- Centralized task tracking.
- Clear escalation procedures.
⇒ Focus on Continuous Improvement
- Track close metrics monthly.
- Document bottlenecks and solutions through regular process reviews.
- Team feedback sessions.
Month-end Close with our team
Implementing these strategies can be challenging, particularly for growing Dental Service Organizations (DSOs) that lack the necessary expertise and resources. Bright Balance’s fractional accounting team offers a cost-effective solution, bridging the skills gap and providing the specialized support needed to enhance financial management and drive success. Here’s how:
Immediate Expert Implementation
Our fractional CFOs and Controllers bring:
- Best practices from extensive experience across diverse DSO settings.
- Deep technical expertise in automated systems.
- Proven month-end close optimization frameworks.
Flexible Scalability
- Right-sized support that is suitable for your DSO’s growth stage.
- Ability to seamlessly scale up during complex periods and as your DSO flourishes.
- There are no fixed overhead costs.
- Access to the required specialized expertise.
Technology Optimization
Our team helps:
- Select and implement the right tools.
- Design automated workflows for optimized financial processes.
- Create custom reports and dashboards.
- Train your team on how to use new systems.
Sustainable Process Development
We don’t just implement changes; we:
- Document all procedures
- Train your team thoroughly
- Provide ongoing support
- Monitor and adjust processes as needed
Most of our DSO clients with multiple locations have reduced their month-end close from 20 days to an average of 7-10 days within three months of engaging with our fractional team. This improvement allowed their finance team to:
- Provide faster insights to stakeholders.
- Reduce overtime during close periods by 75%.
- Improve reporting accuracy by 40%.
- Free up time for strategic analysis
Transform Your Month-End Process
Managing and refining the month-end close process is crucial for improving an organization’s financial operations. At Bright Balance, we provide access to fractional finance leaders with specialized skills in optimizing these processes. Our experts bring the essential experience and execution capabilities needed to streamline your month-end close and implement sustainable practices that will evolve alongside your organization.
By partnering with Bright Balance, DSOs can accelerate the efficiency and precision of financial closing, allowing maximum focus on driving growth and profitability. Contact us today to discover how we can assist you in improving your financial workflows.
Ready to Optimize Your Month-End Close? Schedule a free consultation with one of our DSO expert fractional CFO, Jason Croley,+ at jcroley@brightbal.com.
