Be Mindful Of Your History

Remember how eating your vegetables when you were a kid seemed like the worst thing ever? Now, looking back, you realize vegetables helped ensure you didn’t have a heart attack at the age of 25 and you may even enjoy them now. Although I’m not in the business of giving medical advice, it’s pretty much the exact same thing with the financials of your company.


Remember how eating your vegetables when you were a kid seemed like the worst thing ever? Now, looking back, you realize vegetables helped ensure you didn’t have a heart attack at the age of 25 and you may even enjoy them now.

Although I’m not in the business of giving medical advice, it’s pretty much the exact same thing with the financials of your company. 

Very few people enjoy doing month end account reconciliations and digging into journal entries but it’s a necessity for every company, no matter the size. These things are done to avoid lack of useful financial data, the subsequent disorganization, and finally the resulting crippling anxiety. In all seriousness, closing your books at the end of the month should be one of the first practices any company solidifies and maintains. It doesn’t make sense to have month end close data by the time you’re ready to close the next month.

I’ve seen companies not actually close month end until the 15th of the next month, which usually turns into the 20th, at which point they are already starting the process close for the next month and couldn’t speak intelligently about their financials for over 4 weeks. You don’t want to be that person constantly working off stale data. And for the sake of the sanity of the CFO community, make sure you are closing numbers are accurate. 

One of the main reasons I started Clockwork is for companies to mitigate as many possible risks when it comes to managing a financial model. You shouldn’t have to run the risk of someone fat-fingering your financials or putting something in wrong that no one else can see. 

Few things are worse than entering a 58 instead of 85 and realizing that you made a decision based on a simple mistake in your numbers. One of the things that might be worse is sending out a financials report package or presentation with numbers that are wrong.