Year-end close is always a demanding season for financial institutions: reporting deadlines tighten, cross-department workflows get more complex, and teams balance daily responsibilities while preparing for audits and strategic planning. Still, with the right preparation—and modern, AI-enhanced tools—year-end close can become a predictable, controlled, and more efficient process.
This guide walks through practical steps finance leaders can take today to boost visibility, strengthen controls, and simplify closure across the institution.
Start With a Clear Plan and Timeline
A strong timeline sets the tone for the entire close. Start by outlining every key date that touches your accounts payable (AP), finance, audit, and operations teams. Map dependencies such as reconciliations, accrual deadlines, and vendor statement reviews.
A shared schedule keeps everyone aligned and reduces last-minute surprises. When teams understand what’s coming and when, they can focus on what matters instead of chasing status updates. Better coordination and fewer bottlenecks mean a smoother, more predictable close.
Strengthen Internal Controls Before the Rush
Year-end is not the time to discover gaps in approval flows or user permissions. Review your internal controls early to make sure policies match current staffing, regulatory requirements, and risk tolerance.
Check for:
- Approval routing that reflects up-to-date roles.
- Permission levels aligned with job functions.
- Proper separation of duties.
- Updated documentation for auditors.
A strong control environment protects accuracy and ensures your team enters year-end with confidence. These tightened controls reduce risk and reinforce compliance, making the audit experience easier for everyone.
Clean and Validate Vendor and Payment Data
Vendor data drives much of the year-end process. Outdated records, missing W-9s, and unresolved invoice exceptions can slow down financial institutions at the worst possible time.
Take time to:
- Confirm vendor contact information.
- Validate current payment preferences.
- Clear out stale or duplicated vendors.
- Resolve open invoice issues early.
A well-organized vendor file reduces delays and eliminates unnecessary back-and-forth during reporting and tax preparation for a faster, more accurate close.
Increase Visibility with Real-Time Reporting
Financial institutions need instant insight into spending, outstanding liabilities, and cash position. Real-time dashboards bring clarity to what’s been paid, what’s pending, and what still needs attention before the period closes.
Provide shared visibility for AP, FP&A, and audit teams. When everyone works from the same data, it can be easier to prioritize tasks, address exceptions, and prepare for reporting deadlines. Clearer insights support stronger planning and smarter decisions heading into the new year.
Automate Manual Tasks with AI-Enhanced Tools
Manual processes often create the friction that slows year-end close. AI-enhanced automation can reduce the burden by handling repetitive, time-consuming tasks such as invoice receipt, coding, routing, and reconciliation.
Moving away from paper and manual data entry streamlines workflows across the business. It also reduces errors, improves control, and gives teams more visibility into where invoices stand.
Automation frees teams from manual work so they can focus on higher-value tasks during a critical time of year.
Prepare for Audits with Organized Documentation
Audits move quickly when documentation is easy to find and consistent across the organization. Centralize invoices, approvals, payment history, and supporting details in a digital system where everything is stored and searchable.
Provide auditors with controlled access to what they need, and ensure your team understands where key documents live. Organized records turn audits into a smoother, faster experience with fewer disruptions to daily operations.
Set Your Team Up for Success in the New Year
Once close is complete, hold a quick debrief to identify what worked well and where improvements can be made. Look for technology or workflow changes that could reduce friction next year.
The most successful financial institutions treat year-end close as an opportunity to evolve, not just a task to complete. Continuous improvement helps teams stay resilient and ready for change, preparing your organization for long-term success.
End the Year on a High Note
Year-end close doesn’t have to feel overwhelming. With smart planning, strong controls, and support from AI-enhanced software and automation backed by real people, financial institutions can approach close with clarity and confidence. The result is a faster, more reliable process that gives teams back their bandwidth and empowers them to focus on strategic initiatives that move the business forward.
It’s Not Too Late to Plan Better with AvidXchange
With automation solutions that help you centralize your AP process, AvidXchange can help make your year-end close process a breeze.
Want to learn more? See how we’ve helped financial institutions like yours and book a demo today.