Beating the clock (and Parkinson’s Law): Why automation is key to a better month-end close

The month ends, the pressure mounts and the race to close the books begins. It’s a familiar cycle, often marked by a frantic push to hit deadlines, sometimes at the expense of accuracy. But what if we could fundamentally change this experience by moving beyond simply meeting the deadline and instead focusing on a smoother, more accurate and, ultimately, less stressful close?

Lately, I’ve been thinking about why the month-end close in so many organizations feels like a series of disconnected tasks, performed by teams working in silos with limited visibility into the bigger picture. Different individuals or teams own specific accounts or processes, diligently working on their piece of the puzzle. Yet, the connections between these pieces — the understanding of how one person’s output directly impacts the next stage and the final financial statements — often feel flimsy.

The problem with traditional close timelines

This situation is often exacerbated by a phenomenon known as Parkinson’s Law, the idea that work expands to fill the time available for its completion. If we allocate a set number of days or hours per month for the close, the work tends to stretch out to occupy that entire timeframe. This happens both consciously and unconsciously. Tasks that we could complete more efficiently can become drawn out and the initial urgency can dissipate, leading to a last-minute scramble. 

It reminds me of a poorly orchestrated assembly line. Imagine a car factory where each worker focuses solely on their individual task, like installing a door or tightening a bolt, without any real-time feedback on the quality of their work or how it affects the subsequent steps. Compound this with the fact that each worker feels they have “all day” to complete their seemingly small task.

Then, picture the pressure intensifying. Leadership demands the finished product by a specific time, no excuses. The focus narrows to speed, potentially overshadowing the crucial element of quality. The car rolls off the line “on time,” a superficial victory. But when quality control steps in, the reality hits: misaligned parts, missing components — a fundamentally flawed product requiring significant and costly rework.

Sound familiar? When those month-end financials are delivered on schedule but later reveal discrepancies, incomplete documentation and overlooked details? That frantic, siloed approach, often fueled by the creeping influence of Parkinson’s Law, leads to precisely this outcome. We allow the work to expand to fill the available time and end up creating more work, and potentially more significant issues, down the line. 

Assembly line reimagined: What automation makes possible

What if we could transform this disjointed process into a seamless, interconnected “accounting assembly line?” This is where automation comes into play, offering a direct antidote to the inefficiencies brought about by Parkinson’s Law.

Consider the impact of robotics and sophisticated systems in a modern car factory. These technologies not only accelerate production but also dramatically improve accuracy and consistency. Imagine automated systems flagging inconsistencies early in the process, preventing downstream errors. An automated accounting assembly could perform complex tasks with unwavering precision, unaffected by the human tendency to let work fill the available time. 

Automation offers the same potential for our month-end close, directly combating Parkinson’s Law by:

• Imposing efficiency by design: Automation tools don’t succumb to the temptation to stretch out tasks. They execute processes in a standardized, efficient manner, completing them in their actual required time, regardless of the broader timeframe allocated for the close.
• Shrinking task timelines and fostering focus: Automating repetitive and manual processes drastically reduces the time needed for these core closing activities. This inherently shortens the close timeline because it prevents work from expanding unnecessarily and forces a more focused approach. 
• Promoting timeliness and accountability: Automated workflows with reminders and escalation protocols inject a sense of urgency and ensure tasks are completed on schedule, directly counteracting the procrastination that Parkinson’s Law often encourages.
• Enhancing accuracy from the start: Automation minimizes human error, leading to cleaner data and fewer discrepancies. There’s no longer a need for extensive investigations and rework at the tail end of the close. It essentially prevents the rework “penalty” of a rushed, Parkinson’s Law-influenced process. 
• Fostering integration and visibility: Automation can connect disparate systems and provide a holistic view of the closing process. It breaks down silos and demonstrates how each task contributes to the final outcome.

By understanding the subtle yet powerful influence of Parkinson’s Law on traditional close processes, we can better appreciate why simply allocating more time, adding more bodies, offshoring labor or purchasing siloed automation tools isn’t the solution. Embracing strategic automation isn’t just about closing faster; it’s about reclaiming our time, enhancing accuracy and creating a more streamlined and less stressful month-end close by actively preventing work from expanding to fill the available void. 

It’s about building that high-quality “car” efficiently the first time, rather than constantly fixing a rushed and flawed product, then replicating the process to continue to produce that same quality of vehicle.

Why do finance automation adoption numbers lag behind a belief in its importance? See the latest industry stats in “The R2R automation playbook.”

Look for the signs

Think critically about where Parkinson’s Law might be subtly impacting your current close. It doesn’t exactly announce itself.

Ask yourself and your team:

• Are we still relying on Excel spreadsheets for close task management?
• Do we wait until the last 48 hours to reconcile bank statements or finalize accruals?
• Are our ERP systems feeding real-time data into our close checklist, or are we still relying on someone to tick a box when a task is complete?
• Are we discovering discrepancies too late and forcing rework that derails forecasting and decision-making?

If the answer to any of these is yes, it’s time to analyze how you might be unintentionally allowing Parkinson’s Law to creep in and shape your workflows.

Win back time and drive a predictable, quality close

Speed alone isn’t the goal. What moves the needle is a close process that doesn’t crumble under pressure.

Automation can empower your team to own a predictable, auditable and resilient close process. When every financial transaction, journal entry and general ledger update flows through a standardized, automated system and quality control is built right into the process, they’ll spend less time chasing manual steps and more time refining strategy. 

You’re not removing people from the process; you’re allowing them to work smarter. Not only will automation eliminate the delays and stress that so often plague the month-end effort, but it will also help you with the practical stuff: identifying cash flow issues before they hit the balance sheet, validating metrics, ensuring data consistency and more. Automation is your lever against the inevitable.

Not sure where to start? Learn about the agile approach to finance automation.