Year-end closing: stressful or on autopilot?

The end of the calendar year is approaching. And for many often also the end of the financial year. How does your organization survive the year-end closing?

How do you deal with the year-end closing as a company?

Year-end closing: stressful or on autopilot?

The end of the calendar year is near. And for many companies this also means the end of the fiscal year. The year-end closing is imminent. Stress in the finance department about those last outstanding invoices. Suppliers who just want to be paid at the last minute. Or just not because they don’t want too much cash on the account. How do you deal with this as a company?

Cash flow and supplier relationship considerations

The most important consideration that we advise you to make is: pay attention to the cash flow and a stable annual result. How is your company doing financially? A lot of cash in the account and no major investments in the offing? Suppliers who are always on the phone? Think of the relationship with the suppliers instead of any interest or that piggy bank. Pay the supplier a few days early and you will make it a satisfied supplier. Is it wise to pay all suppliers earlier and start the new year with a clean slate? Of course, that depends from company to company and what the intended and fixed income is in the new year. Make sure that your annual result remains stable compared to previous years. An ever-changing solvency and current ratio arouses suspicion among stakeholders.

Benefits of earlier payment during year-end closing

The benefits of an earlier payout are multiple. Apart from a timely and prosperous year-end closing. We quote a few. We already mentioned a satisfied supplier. But there is more. The accounts payable department receives fewer telephone requests for early payment on the last days of the year. Your company has less money in the account, which in turn is beneficial for the calculation of the wealth tax. And your financial controller needs to take less account of outstanding invoices for overviews and analyzes for the past financial year.

Automation leads to an even greater advantage

Only benefits it seems, but there is still a catch. Going through the invoices, which could possibly be accelerated, takes time. A lot of time. Time that may be missing from your employees. Do the benefits still outweigh this time-consuming job? Well, if your organization automates this.

Automating the early payment of your invoices to your suppliers is very easy via the NCN Capital platform. With the additional advantage that your organization will also receive a discount on the invoice. Not only a satisfied supplier, but also a discount. In this way you optimize your working capital and your supplier relationships.

More information?

Curious how the NCN Capital platform works? Then contact our team contact for an introductory meeting without obligation. We look forward to hearing from you and are happy to help you achieve an even better financial business position.