By Darren Lunz | 13 November 2024
As the end of 2024 approaches, finance teams face one of their most challenging periods of the year. While many employees prepare for a well-deserved break, the demands on finance functions intensify. This is especially true in the Southern Hemisphere, where extended summer holidays coincide with critical year-end reporting deadlines, while in the Northern Hemisphere, even shorter breaks over Christmas and New Year can leave finance teams grappling with tight schedules.
This article explores how businesses can effectively manage staffing shortages during this busy period, ensure timely reporting, and prepare for the upcoming audit season. By leveraging external finance resources and advisory partners, such as Malander Advisory, finance leaders can navigate year-end chaos and set their teams up for a successful start to 2025.
- Holiday Staff Shortages: A Hidden Threat to Year-End Reporting
As team members take time off for the holidays, finance departments often find themselves understaffed just as critical reporting deadlines loom. In regions like the Southern Hemisphere, where many companies close for several weeks, this challenge is even more pronounced. According to a survey by PwC, 64% of CFOs in companies with December fiscal year-ends report that reduced staffing during the holidays leads to delays in delivering management accounts, board packs, and annual reports.
These delays can create a domino effect, pushing back strategic decision-making in early January when businesses are setting goals for the new year.
Practical Solutions:
- Plan Ahead: Encourage finance teams to begin preparing year-end reports early in Q4 to reduce pressure during the holiday season.
- Flexible Staffing Solutions: Malander’s Finance Resourcing services can fill short-term capacity gaps, ensuring that your business continues to operate smoothly even when key staff are on leave.
- Outsource Non-Core Activities: Outsourcing specific finance functions or reporting cycles can alleviate internal workloads and ensure timely delivery.
- The Overlap of Year-End Reporting and Audit Season
For businesses, especially listed entities or those with complex equity and debt structures, audit season can be particularly stressful. Many companies face the challenge of finalizing year-end accounts while simultaneously preparing for auditors, who are often on-site shortly after the new year. A study by EY found that 55% of companies experience delays in audit readiness due to overlapping priorities, leading to increased pressure on finance teams.
Practical Solutions:
- Engage an External Finance Advisory Partner: Malander’s Finance Function Outsourcing can streamline audit preparation, ensuring compliance and readiness without overburdening your internal team.
- Early Data Collection: Start gathering audit-related data earlier in Q4 to avoid a time crunch when auditors are on-site.
- Optimize Workflows: Implementing automated systems and ERP solutions can reduce manual processes, allowing finance teams to focus on critical tasks. Malander’s Accounting Advisory team can assist with these implementations.
- Delivering Timely Management Accounts to Drive Strategic Decisions
The disruption caused by holiday leave can also affect the preparation of monthly and year-end management accounts, which are crucial for strategic planning. According to research by Deloitte, 48% of finance teams struggle to deliver accurate management accounts on time during December and January due to staffing shortages and competing priorities. Delays in providing these reports can impact decision-making, slowing down a company’s ability to set strategic directions for the new year.
Practical Solutions:
- Temporary Finance Resources: Utilize fractional CFOs and finance consultants from Malander to assist with preparing management accounts and board packs, ensuring timely delivery even during busy periods.
- Outsource Financial Close Processes: Free up your internal team by outsourcing year-end close activities to experienced partners who can deliver accurate reports on time.
- Prioritize Reporting Needs: Focus on high-impact reports first, using simplified templates for less critical reporting to save time.
Why Malander is Your Strategic Partner for Year-End Success
Navigating the complexities of year-end reporting and audit preparation can be challenging, but Malander is here to help. With our flexible finance resourcing, outsourcing, and advisory services, we can provide the support your business needs to thrive during this critical period. By partnering with us, you can ensure that your finance function remains resilient and effective, even in the face of holiday-related disruptions.
Key Takeaways:
- Start Early: Begin preparing reports, reconciliations, and audit documentation in Q4 to reduce last-minute stress.
- Leverage External Support: Use finance resources and advisory partners like Malander to bridge staffing gaps and ensure efficient workflows.
- Automate and Outsource: Optimize processes through automation and outsourcing to streamline reporting cycles, enabling your team to focus on strategic activities.
By taking these steps and partnering with Malander, businesses can ensure that they close out 2024 smoothly, positioning themselves for a successful and strategically focused 2025.