Continuous close – sometimes called continuous accounting or rolling close – is a departure from the traditional accounting method of closing the books at the end of each month. It involves keeping accounts updated daily, relying on integrated systems and automation to speed up routine tasks and make real-time financial entries.

Every business should always look for opportunities to raise efficiency and make the best possible use of its time and resources.

These are essential priorities for finance and accounting teams, where smooth, reliable performance is crucial to the organization’s operation.

With this in mind, consider the various methods and tactics available to help your finance function be more effective and deliver greater value for the business.

One such practice is continuous close, which can deliver clear benefits for the company but could also require a significant shift in how people do their jobs.

What is continuous close?

Continuous close – sometimes called continuous accounting or rolling close – is a departure from the traditional accounting method of closing the books at the end of each month. It defines keeping accounts up to date daily, relying on integrated systems and automation to speed up routine tasks and make financial entries in real time.

One example that this practice is the instant processing of invoices as soon as they arrive in your inbox. Using technology to manage this task automatically – as opposed to having people do it manually – will help you keep your accounts payable entirely up to date and correct.

The ultimate goal of the continuous close methodology is to ensure your books accurately represent your financial position at all times, so you don’t have to wait until the end of the month to get a clear picture of where you stand.

If you reach this point, you can run a profit and loss calculation any time and get a good idea of the company’s current financial health.

The benefits of continuous close

Every business is different, and the same advantages you can expect to gain from continuous accounting will depend on your unique needs and circumstances.

But the most common benefits of this practice include:

Accuracy

Trying to balance the books at the end of the month, only to find the numbers you’re working with need to be updated or updated, is a common problem for accountants. Continuous close relies on technology – which reduces the risk of human error – and helps you maintain a high accuracy level by reconciling accounts daily.

Time savings

With traditional month-end accounting tasks taken off their hands, the people on your finance team can concentrate on more worthwhile and valuable activities, such as analyzing the numbers in real time and putting them in the context of the company’s current plans, goals and challenges. As well as supporting better business performance, this helps to deliver a more fulfilling professional experience for your employees.

Regulatory compliance

Keeping your finances and accounts in check is essential not only from a commercial perspective but from a compliance standpoint as well. Real-time balancing of your books enables a high level of visibility over your financial situation for auditors and industry authorities, which is particularly important in regulated sectors.

Well-informed decision-making

Every big decision you make as a company should be made in the context of your financial circumstances, so it’s a benefit to have a clear and reliable picture of where you stand – particularly regarding cash flow – before committing to any additional spending or investment. There is a significant advantage of continuous close for the 86% of firms that have said they need more insight from their financial analytics.

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