Lesson ProgressPhase 4 of 6
Phase 4Independent Practice
Independent Practice: Launch: The Month-End Closing Crisis

Analyze month-end procedures and identify automation opportunities

Independent Practice: Choose Your Month-End Closing Approach

Sarah is deciding how to handle month-end closing as TechStart grows. You'll help her evaluate three different approaches. Each choice has consequences for timing, accuracy, compliance, and business confidence. Choose one approach to see its impacts.

Your Decision Impact

The approach you choose will directly affect Sarah's ability to make decisions, report to stakeholders, and grow confidently. Pay attention to how each option performs on the month-end close workflow scoreboard.

Keep Using Cash Ledger Only

Continue recording transactions as money changes hands. Make month-end decisions based on cash balances.

Timing:2 hours (fast)
Accuracy:Low - misses earned but unbilled revenue
Compliance:Poor - no accruals or deferrals
Add Manual Accruals Only

Continue using cash ledger but manually calculate and add accruals at month-end.

Timing:1-2 days (slow)
Accuracy:Medium - better but error-prone
Compliance:Partial - has accruals but may miss deferrals
Build Month-End Close Workflow

Implement complete month-end closing: accruals, deferrals, adjusting entries, and closing entries.

Timing:< 4 hours (target)
Accuracy:High - complete and accurate
Compliance:Excellent - all GAAP adjustments