10 Best Financial Close Software Tools for Midsized Businesses [2024]

The 2027 Forecast for Midsize Companies

A new ISG report predicts that by 2027, half of midsize companies will use close management software to speed up the financial close and gain better control over the process.

But Why?

According to the March 2023 IDC SaasPath Survey, midsize companies are frustrated that too much time is spent on low-value, data-entry-heavy accounting duties. The survey highlights that reporting/analytics, accounts receivable, and financial close are the biggest time-consuming tasks for these businesses. A heavy reliance on spreadsheets for these tasks is common, leading to resource misallocation due to limited resources.

The second major frustration for midsize companies is the high error rate in financial reporting. Finance leaders need timely and accurate information for better decision-making. Inaccurate data results in extra work for validation and slows down the financial close process, reducing confidence in the final reports. Many midsize organizations struggle to fully substantiate their balance sheets, prioritizing urgent accounts and leading to late or inaccurate financial statements.

What to Consider While Choosing a Record to Report Software?

Choose Scalable Accounting Software:

When selecting accounting software, opt for solutions that can scale with your business and integrate with other applications. This ensures your software will grow with you and support various aspects of your operations. 

Prioritize a Reliable Financial Close with Continuous Accounting:

Month-end close is an essential process where you finalize transactions and prepare financial reports for the previous month. Implementing continuous accounting allows you to close your books daily rather than monthly, providing you with up-to-date financial data and enabling better decision-making. This approach keeps you informed about your company’s performance, sales, costs, and cash flow, enhancing your strategic planning.

Effortless Learning Curve for Your Finance Team

To be truly effective, financial closing software must be user-friendly and beneficial for every team member, not just finance leaders alone. The software must support something similar to Excel, as accountants have worked with Excel their whole lives. Suddenly asking them to use something unfamiliar can create chaos. Ensuring the software is intuitive and has familiar tools like Excel can greatly enhance user acceptance and streamline the transition process. When everyone finds the software helpful and easy to use, adoption rates increase, leading to improved overall efficiency and satisfaction across all levels.

Integration Capabilities

Integration capabilities are crucial for smooth data flow and seamless operation with other systems in your technology stack. Your financial close software should easily connect with existing ERP, CRM, BI, and other systems to ensure data accuracy and efficiency.

Evaluate the software’s integration capabilities by checking if it offers pre-built connections with popular ERP systems like SAP, Oracle, or Microsoft Dynamics. Look for robust APIs that support custom integrations with proprietary or legacy systems. Assess how the software manages data synchronization to keep information consistent across different systems and databases. Finally, ensure it can provide real-time integration for instant updates and synchronized data across platforms.

Top 10 Financial Close Softwares for Mid-sized Business in 2024 and Beyond

1. HighRadius

   HighRadius Financial Close Management is designed to address your biggest pain points, making the close process smoother and more efficient. No more tedious, time-consuming manual tasks like transaction matching, reconciliation, and journal entries. The advanced automation and AI tools reduce the time spent on these activities by up to 70% and achieve an impressive 90% auto-match rate for transactions.

   With HighRadius advanced month end close software, your finance team can finally move away from repetitive manual work and focus on higher-value activities. Real-time dashboards and detailed reports give you instant visibility into the close process, allowing you to monitor progress, identify bottlenecks, and resolve issues quickly. Experience a financial close process that’s intuitive and error-free, freeing your team to achieve more with less effort.

   Pros: 

   • Automatically matches transactions, reducing the time and effort required for manual reconciliations.
   • Provides dashboards and reports for real-time tracking of close progress, enhancing transparency.
   • Minimizes the risk of human error through automated processes and controls.
   • Ensures adherence to regulatory requirements with built-in compliance features.
   • Seamlessly integrates with existing ERP and financial systems for a unified workflow.
   • Best in class AI based software to detect anomalies and suggest resolutions.

   Cons: 

   • Designed specifically for accounting professionals, HighRadius Financial Close is ideal for small businesses, mid-market users, and enterprise companies. It is not intended for personal finance use. 
   • While it suits all accounting teams, those new to accounting may experience an additional learning curve.

   

2. Fluence

   Fluence is designed for the financial close process and consolidation, with an easy-to-use interface tailored for mid-size businesses. It has an Excel like interface, making it user-friendly. Most of the EMEA companies use Fluence for closing books.

   Pros: 

   • Fluence has built-in workflows that help entity and group controllers work together smoothly. Its closing features include breaking down tasks by entity, reporting status hierarchically, and offering comprehensive workflow actions. These features also automate key tasks during the closing process.
   • Fluence uses Microsoft Azure OpenAI services to provide chatbots for users. It is also testing AI for transaction matching, anomaly detection, and narrative reporting to help automate accounting processes and provide decision insights.
   • Fluence offers quick deployment times with its ready-made input forms and reports. It supports implementation partners with certifications and regular project reviews to ensure timely and successful deployments.

   Cons: 

   • Fewer Fluence customers use its consolidation and close management features compared to its reporting capabilities. Even though Fluence focuses on close management and consolidation, potential customers should check if these features meet their needs before deployment.
   • Fluence does not offer industry-specific accelerators like other vendors who provide preconfigured templates and have partners with deep industry knowledge. Clients needing industry-specific solutions should assess if Fluence meets their needs.
   • Most of Fluence’s customers are in Europe, due to its acquisition of XLCubed, a European company. While Fluence’s headquarters and main operations are in North America, customers looking for a vendor with a larger global presence and partner network might find this limiting.

3. OneStream

   The OneStream platform helps with financial planning, reporting, and consolidation. It provides a complete set of tools for financial consolidation and reconciliation, budgeting, forecasting, reporting, and analysis.

   Pros: 

   • OneStream offers a wide range of features for the consolidation process, including Extensible Dimensionality, guided workflows, and advanced financial intelligence with built-in capabilities like drill-back features and multiple pre built dashboards.
   • OneStream has various data load options and connectors to ERPs (on-premises or cloud) and other source systems. Data imports include error handling, validation, and notifications, with options for scheduled or manual uploads.
   • OneStream’s flexible, user-based pricing allows customers to license the full platform according to individual needs, making it easy to access its full functionality.

   Cons: 

   • OneStream provides standard templates and forms for disclosure and regulatory needs but does not support XBRL filing. Clients needing XBRL tagging and filing will have to use other vendors.
   • While OneStream offers machine learning to flag anomalies and has AI features planned for 2024, other vendors provide more AI capabilities, such as auto mapping of charts of accounts, narrative generation, interactive chatbots, and transaction automatching.
   • OneStream offers limited interactive demos during the sales process, while other vendors provide free self-guided demos and trial options to help buyers make decisions.

4. Prophix

   Prophix is a software that helps organizations manage their finances. It automates and simplifies tasks like budgeting, forecasting, reporting, and combining financial data.

   Pros:

   • Prophix allows users to fully customize their reports to meet their needs and supports both IFRS and GAAP standards. Users can also build reports directly in Excel and pull data from the application using Microsoft Office add-ons.
   • Prophix prioritizes its product roadmap by gathering feedback from customers, analysts, and market research. Recent improvements, such as updates to the Prophix Portal, the user interface, and data import automation, show how customer feedback influences product development.
   • Prophix’s presales, sales, and implementation teams have extensive knowledge and experience in accounting. This allows them to offer valuable insights and educate potential customers on how Prophix’s products can meet their business needs during the buying process.

   Cons: 

   • Prophix offers basic templates for clients to set up and track their reconciliation processes. However, it doesn’t have advanced features like account categorization, transaction matching rules, and auto certification that other vendors provide.
   • Prophix’s current close and consolidation customers are mainly small to upper-mid size companies in Europe. Large and extra-large companies with global operations should assess if Prophix can manage their complex business needs.
   • One of Prophix’s main growth strategies is to sell its consolidation solution to current financial planning clients. While the company plans to reach new markets with new product features in 2024, its current focus might restrict access to potential clients who do not already use its financial planning software.

5. Blackline

   BlackLine’s cloud-based software automates accounting workflows, streamlining financial reporting and offering a central, secure workspace. It also provides SAP solutions for a complete view of a business’s financial health.

   Pros:

   • BlackLine offers detailed close management features for both entity and group levels. It includes customizable workflows that integrate with the overall solution, supporting multiple layers of approvals and certifications. It also provides customizable dashboards and drill-through functions to enhance collaboration between group and entity accounting teams.
   • BlackLine collaborates closely with its customers throughout the product development process, from generating ideas to reviewing features during development and beta testing. This approach helped them release the new Financial Reporting Analytics solution for consolidation and group reporting needs.
   • BlackLine offers several implementation tools, like the Modern Accounting Playbook and Journal Entry templates. These tools, which can be used across different industries, help new customers get value from the software faster.

   Cons: 

   • BlackLine does not offer a presentation-ready version of Management Discussion and Analysis (MD&A). However, it does help with creating financial, nonfinancial, and non tabular disclosures through its workflow management and comment summarization features.
   • BlackLine currently provides limited AI features with its rule-based Variance Analysis and Transaction Matching solutions. Its 2024 plans include AI-driven risk assessments by account and chatbots to provide in-app assistance to users.
   • BlackLine offers several solutions and prices them either as a bundle or individually. Some solutions are priced per user, while others are priced per transaction. This pricing structure can make it challenging to compare proposals from different vendors based on a client’s needs.

6. FloQast

   FloQast close management software is designed to help financial teams work together more effectively, reduce mistakes, and make the close process smoother.

   Pros: 

   • FloQast makes the close process more transparent, helping to identify any delays or issues quickly. 
   • It includes ready-to-use tools for checklists, reconciliations, and flux analysis.

   Cons: 

   • The software needs more templates for reconciliation.
   • It has limits on the size of reconciliation files.
   • Users also experience performance issues with the Flux functionality.

7. Wolters Kluwer CCH Tagetik

   CCH Tagetik is an all-in-one business intelligence and accounting software that improves financial and operational planning. It speeds up the consolidation and closing process, and helps users analyze results, create models, and compare the financial impact of various business scenarios.

   PROS

   • Financial reporting can be done using Excel or Power BI.
   • It is flexible, allowing both high-level and detailed analysis.
   • CCH Tagetik clearly describes processes, making it easy for users to know their status and the next steps they need to take.

   CONS

   • Error messages can sometimes be too vague for basic users to understand and fix the issue.
   • There are challenges in implementing the transaction matching module, especially with connectivity (API vs. FTP).
   • CCH Tagetik does not offer an easy way to restore old data sets (fact tables and dimensions) without keeping outdated dimension values in the current application.

8. LucaNet

   LucaNet is CPM software designed for finance teams to speed up financial close, consolidation, planning, and reporting. Although it may not cover all finance department needs like some FP&A tools, it specializes in consolidation and financial close, making it ideal for month-end and year-end closings.

   Pros: 

   • LucaNet has features for disclosure management, tax compliance, and ESG reporting. Customers will benefit from more functionalities, a unified experience, and consistent pricing across the company.
   • It has over 300 standard integrations with ERP and accounting systems, allowing it to import GL and transaction data for detailed reporting. This improved data integration helps speed up implementation for clients using multiple accounting systems.

   Cons:

   • LucaNet does not currently use AI in its product but is considering it for its 2024 plans. Other softwares are already using AI and has strong plans for its future development.
   • The LucaNet.web workspace views are not very user-friendly and lack advanced features like responsive design and interactive options.

9. Board

   Board is a software platform that offers integrated business intelligence (BI) and corporate performance management (CPM) solutions. It combines planning, forecasting, reporting, consolidation (including financial close), and analytics to help with decision-making and managing business performance.

   Pros: 

   • Board’s report building is fully customizable, letting users create reports that fit their needs and comply with IFRS and GAAP standards. It features dynamic dashboards and multidimensional analysis, and integrates with Microsoft Office and Teams for easy access and report sharing among users.
   • The product comes with built-in generative AI, natural language processing (NLP), and chatbots. It also includes Microsoft Azure ML integration, which can be customized during implementation to support AI-powered solutions like NLP and generative AI for close and consolidation processes.
   • It has pre built connectors for ERPs and over 270 APIs for various source systems, allowing it to import general ledger and transaction data for detailed reporting. This integration makes the consolidation process more efficient and speeds up implementation for new customers.

   Cons: 

   • Board offers simple templates for clients to set up and track their intercompany reconciliations. However, it currently lacks advanced features such as account categorization, transaction matching rules, and auto certification. 

10. Oracle

    Oracle Financial Consolidation and Close Cloud is a cloud solution designed to improve the financial close process. It aims to reduce risk, ensure transparency, and provide accurate results to simplify consolidation and closing tasks.

    Pros:

    • Oracle’s consolidation solution offers advanced features like handling large data volumes, comprehensive rules, and robust reporting. Its close process is enhanced by visual dashboards and workflows, which improve user experience and support collaboration during the closing cycle.
    • Oracle integrates AI/ML in its solutions for tasks like detecting anomalies in consolidation, generating narratives in reports, and using interactive chatbots. It is also testing AI for transaction matching and dynamic approval of journal entries to enhance automation and decision-making in the closing process.

    Cons: 

    • Unlike some vendors, Oracle’s risk management features are not included in the main solution but are available through a separate product, Oracle Cloud Risk Management. Clients need to account for extra costs and licensing to use these features.

9 Ways to Maximize the Benefits of Financial Close Software

Define Clear Processes and Workflows: Create clear, standardized steps for each part of the financial close process, from data entry to reporting. Make sure everyone knows their roles and responsibilities to avoid confusion and errors.

Use Automation: Take advantage of the software’s automation features to handle routine tasks like journal entries, account reconciliations, and report generation. This will help you save time and focus on more important tasks.

Keep Software Updated: Regularly update your software with the latest patches and improvements to ensure it runs smoothly and securely. Perform routine maintenance, audits, and backups to prevent issues.

Explore Advanced Features: Use advanced features like predictive analytics and AI-driven insights to improve forecasting, identify trends, and manage risks more effectively.

Track Performance Metrics: Set key performance indicators (KPIs) to monitor how well your financial close process is working. Look at metrics like close cycle time and reconciliation accuracy to find areas for improvement.

Embrace Continuous Improvement: Encourage a culture of continuous improvement by gathering feedback, addressing pain points, and making ongoing updates to your processes and systems.

Invest in Training: Offer regular training sessions and resources to help users stay up-to-date with the software and best practices. This ensures everyone can use the software effectively.

Ensure Data Accuracy: Implement strong data governance practices to keep financial data accurate and reliable. Use validation rules and error checks to catch and fix discrepancies quickly.

Promote Teamwork: Encourage collaboration between different departments and external partners involved in the financial close process. Good communication and teamwork can make the process smoother.

By following these practices, you can fully utilize your financial close software, improve accuracy, speed up your processes, and make better decisions. Adjust these practices to fit your organization’s needs and continue refining them to address new challenges and opportunities.

Financial Close Management

The HighRadius Financial Close Management software offers complete automation for the financial close process, utilizing AI and machine learning to ease peak workloads and streamline month-end closing. Key features include:

• LiveCube Task Automation: Automate 50% of close tasks with a no-code, Excel-based interface, speeding up and simplifying the month-end close.
• Journal Entry Management: Automate 95% of journal entry preparation and posting, enhancing accuracy and reducing manual work.
• Close Progress Dashboards: Deliver real-time insights into close progress with customizable dashboards and reports, improving transparency and control.
• Maker Checker Workflow: Manage priority tasks with assigned roles, multi-level approvals, and clear responsibilities, ensuring team-wide control through review and approval workflows.
• Checklist Templates: The Close Checklist template Catalog offers pre-configured close checklists tailored by industry, region, or company. These serve as a starting point for accounting departments to select and modify them to fit their specific needs.
• Integrate With System of Records: HighRadius has the capability to integrate with any ERP or Non-ERP systems which makes it a product agnostic software.

With HighRadius Financial Close Management, organizations can reduce the time needed to close by 30%, boost productivity by 40%, and achieve 100% completion of close checklists.