Did you know that you can easily achieve short and long-term business goals for your pharmaceutical company with an efficient month-end close process? That’s right. Streamlining common month-end procedures, such as reviewing and reconciling supply chain discrepancies, sets your team up for success.
A pharmaceutical month-end close process includes:
- Accounts receivable and accounts payable — Financial statements and invoices.
- Your Inventory — Orders shipped out and any products on hand or in transit.
- Compliance checks — Logistics should adhere to state and federal regulations.
- Bottlenecks in your supply chain — Identified to prompt change and improve workflow.
- General ledger — Tracks product recalls or returns, client accounts, and other transactions.
Month-end procedures present the opportunity for your pharma company to course-correct and resolve supply chain issues promptly. This will open up the floor to better data-driven decisions, and cost savings while increasing productivity levels on a company-wide scale. Creating a streamlined month-end close process for your pharma company brings forth many benefits and can be easily done by following these 5 simple steps. It’ll have you wondering why you waited so long to start.
Step 1: Establish a checklist
The first step to implementing a sustainable month-end close process for your pharma company is to establish a robust checklist for your team to follow. This helps to minimize errors in reporting by ensuring consistency month-to-month. Each month-end checklist should contain the same items and tasks, including but not limited to, accounts receivable, accounts payable, inventory, product recalls, order returns, and any supply chain disruptions encountered over the past month.
Step 2: Analyze collected data
Although the month-end close process is often focused on the mechanics, data analysis is critical to the integrity and accuracy of the process itself. An adequate amount of time should be dedicated to analyzing your data. Due diligence during month-end procedures results in fewer transactional errors, and accurate inventory accounts. It’ll also provide your team with the ability to benchmark progress.