Growing delays in UK month-end accounts, study reveals

New data released by accounting software provider iplicit indicates an increasing delay in the preparation of month-end accounts among UK finance departments.

According to the study, over 55% of UK finance decision-makers report taking more than a week to compile and submit month-end accounts, a rise from 39% previously recorded in 2023. Additionally, close to a third claim the process extends beyond two weeks (30%), with 13% stating it can take more than three weeks, up from 17% and 6% respectively in 2023.

The research pointed out key inefficiencies within finance departments, with over a third of decision-makers (38%) citing the need to operate multiple software platforms, excessive reliance on spreadsheets, and a lack of automation for data management as significant issues.

Paul Sparkes, Chief Product Officer at iplicit, remarked, "If you're not wrapping up one month's figures until well into the following month, you're spending most of your time looking backwards — and the information you're working with is old information." He emphasised the importance of timely reporting, saying, "Month-end is a vital temperature check on the business. Without timely reporting, decision makers are in danger of not knowing what's going on in their own organisations quickly enough to act on the data."

Sparkes highlighted the availability of modern technology solutions, stating, "Automation and cloud technologies are available now that can be implemented in days and provide a return on investment in months. The technology that exists now is far more intuitive, making it much easier and quicker for finance teams to get to grips with a new system!" He further added, "Today s organisations need to be more agile and reduce operational risk — and modern, cloud-first systems provide the features to deliver on these ambitions now, not in five years or three years — or even one year. The time is now!"

The inefficiencies reported by iplicit's new data underlined the persistent burden of manual processes, particularly in adjustments and expense allocation across business units, which Sparkes argued could be automated.

"Let's face it — month-end reporting shouldn't feel like climbing Everest every single month, yet for many UK finance teams, it does," Sparkes noted, adding that more than half of finance leaders are taking over a week to close their books. He urged, "If your accounting software is holding you back, it's time to break free from the spreadsheet shackles."

He continued, "The reality is simple, month-end reporting needs to be both quick and accurate. Delays don't just test patience; they hold businesses hostage to outdated systems and manual processes." Highlighting the benefits of automation, Sparkes said, "Imagine the time saved if your team wasn't wrestling with data migrations and triple-checking formulas. Automation can take the grunt work off your plate, leaving you with numbers you can trust and more time to focus on the big picture."

Sparkes concluded by stressing the need for businesses to adopt modern accounting software, "In an era where agility is key, your accounting software should work for you, not against you. It's time to stop settling for systems that belong in a museum and embrace the technology that will future-proof your business. After all, isn't it time your finance team spent less time closing the books and more time writing the next chapter of your success story?"