Financial Close Software Statistics 2024

In the dynamic arena of financial management, staying ahead of technological advancements is more crucial than ever. As businesses navigate the increasingly complex financial landscape, the role of financial close software has become indispensable. The statistics presented in this article on financial close software for 2024 are not merely numbers; they encapsulate the shifting paradigms of how companies handle their financial reporting, compliance, and closing processes. Understanding these trends is pivotal for grasping the broader business environment and identifying opportunities for innovation and efficiency.

Key stakeholders such as CFOs, financial analysts, and accounting professionals stand to gain immensely from this data. These individuals rely on accurate, timely insights to streamline financial operations, mitigate risks, and maintain regulatory compliance. Additionally, software developers and vendors can use these statistics to identify market demands and craft solutions that meet the evolving needs of their clients. By illustrating the impact of financial close software, the article sheds light on how various segments of the industry are transforming to embrace automation and reduce the workload on finance teams.

In the face of rapid technological advancement, strategic decision-making hinges on informed perspectives derived from robust data. This article aims to equip readers with the knowledge necessary to harness financial close software effectively, ultimately fostering a landscape where efficiency and precision are paramount. As businesses prepare for 2024, these insights will be crucial for devising strategies that not only meet current challenges but also anticipate and leverage future financial innovations.

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Top Financial Close Software Statistics 2024

☰ Use “CTRL+F” to quickly find Financial Close Software facts. There are total 133 Financial Close Software Statistics on this page 🙂

Software Effectiveness And Efficiency

• Some financial close software has cut companies’ month-end close process times by 50-80%! ^[?]
• Fluence claims it can reduce the amount of time it takes to do the financial close by 80%. ^[1]
• Workiva cut down their financial close from 10 days to 4 days. ^[1]
• Floqast tools like integrated email sign-offs and quick reference task dashboards allowed Venafi to cut down their month-end close to 10 days from 15 business days. ^[1]
• Greater efficiency: Financial close automation allows accounting teams to reduce time spent on routine closing activities by up to 50-70%. ^[10]
• Leading solutions like BlackLine feature smart matching engines that auto-reconcile over 95% of transactions out-of-the-box without any rule configuration. ^[10]
• According to a Blackline study, financial process automation can drive an over 80% improvement in productivity and achieve up to 2x faster financial close. ^[26]
• Automation can lead to a 30% reduction in time to complete and monitor close tasks. ^[26]

Implementation And Integration

• Implementation was completed in 7 days for MyCarrier, and the team can now carry out their consolidation duties with ease. ^[1]
• Gravity integrates with Bill.com, Microsoft Dynamics 365 CRM, Jet Reports, and a host of other applications available on the Microsoft Power Platform. ^[3]
• Security is a priority with SOC 2 certification, SSO & SAML options, and end-to-end bank-level encryption ensuring your data remains secure. ^[11]
• Bank-level encryption, SOC 2 certification, and user access controls ensure that financial data remains confidential and secure. ^[11]

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Market Trends And Growth

• The market for cloud accounting software is expected to grow to over $416 million by 2024, according to Fortune Business Insights. ^[3]
• By 2027, half of midsize and larger enterprises will use close management software to speed the close and achieve greater control of the process, a new ISG report finds. ^[12]
• The global accounting software market value is expected to reach $735.94 billion in 2025. ^[13]
• The cloud accounting market is growing and is projected to reach 4.25 million by 2023. ^[13]
• The global market for AI cybersecurity is estimated to reach $133.8 billion USD by 2030, up from $14.9 billion USD in 2021. ^[16]
• The global market for accounting software will be valued at close to $12 billion by 2026, growing at a rate of 8.6% annually. ^[27]

Technological Advancements

• Companies can experience 80% increased operational efficiency when accounts payable is automated, with a 366% ROI according to Tech.co. ^[3]
• Nearly 40% of all firms are either innovators or early adopters of technology. ^[13]
• About 63% of firms are training or planning to train around financial business advisory services. ^[13]
• Most companies and governments still spend 80% of their time on data cleansing, which an appropriate machine learning (ML) algorithm can perform in minutes. ^[4]
• 58% of accounting professionals are expected to be automating accounting tasks using artificial intelligence solutions within the next 3 years. ^[13]

User Feedback And Satisfaction

• 51% believe accountants joining the profession today need financial business advisory skills such as cash flow and growth modeling. ^[13]
• 57% said technology literacy is the leading additional skill accountants need. ^[13]
• According to a recent study, 45% intend to automate repetitive, time-consuming accounting tasks, such as data entry. ^[13]
• In a survey, 48% of respondents cited a lack of automation as a hindrance to an effective close. ^[14]
• A further 45% identified manual work and errors as a significant issue. ^[14]

Environmental And Social Governance (esg)

• According to the AICPA & CIMA, sustainability and environmental and social governance (ESG) principles are a top priority for CFOs in 2024. ^[3]
• Over 80% of consumers expect businesses to be actively involved in combating climate change. ^[16]
• Right now, 87% of surveyed consumers in the US support mandatory climate disclosures for businesses, with carbon emissions the core focus. ^[16]

Challenges And Risks

• Cybersecurity remains one of the most unchanging accounting industry trends; the cost of an average data breach is beyond $9 million. ^[34]
• A 2023 Statista survey reported 46% of the respondents indicated improved customer experience thanks to AI. ^[9]
• And with cybercrime projected to cost $10.5 trillion globally by 2025, cyber security isn’t something to ignore. ^[9]

Remote Work And Flexibility

• The trend of remote working, which increased to never-before-seen numbers during the COVID-19 pandemic, has changed the way finance and accounting firms operate. ^[9]
• 31.01% of respondents in the financial sector want to work exclusively from home or remotely. ^[9]
• Nearly 9 in 10 millennials classify professional development and career growth opportunities as very important to them. ^[16]

Regulatory And Compliance

• According to the Accounting Today 2022 Year Ahead Survey, 51% of firms said their biggest challenge is keeping up with regulatory change. ^[13]
• More than 50% of surveyed firms have struggled to keep up with legislative changes. ^[13]
• Only 61% of small businesses are satisfied with the breadth of services their accountant offers. ^[13]

Market Research And Surveys

• Throughout each year, Chief Executive Research surveys more than 700 CEOs, CFOs, and senior finance executives at companies of all sizes and sectors in the U.S. to produce unparalleled reports. ^[8]
• In Trintech’s 2020 Record to Report Benchmark Report, Close Management was surveyed as the 2nd biggest challenge faced by executive and senior-level managers. ^[5]

Financial Performance And Analytics

• A full 82% of finance companies plan to increase their Big Data analytics budgets in the next three years. ^[9]
• Technology literacy is deemed the most critical addition to skill sets for future employees by 57% of accountants. ^[16]
• 58% of respondents from a survey expressed an intention to automate repetitive, time-consuming accounting tasks. ^[13]

Client Expectations And Services

• 82% of accounting firms report that clients expect more services and resources from accountants today than they did five years ago. ^[13]
• 79% of firms surveyed are confident about providing business management and advisory services like cash flow management to business owners. ^[13]
• 75% are confident about providing industry-specific advice for clients such as standard profit margins for small business owners. ^[13]

Data Security And Privacy

• Bank-level encryption, SOC 2 certification, and user access controls ensure that financial data remains confidential and secure. ^[11]
• Security is a priority with SOC 2 certification, SSO & SAML options, and end-to-end bank-level encryption ensuring your data remains secure. ^[11]

Cost Management And Roi

• Accounts payable automation software can save a business $16 or more per invoice. ^[27]
• Accounts payable automation software pays for itself within 6 to 18 months. ^[27]
• 75% of accountants believe that the profession in their country needs to pick up the pace of technology adoption to remain competitive internationally. ^[13]

Employee Training And Development

• 63% of firms plan to train their staff in financial business advisory services. ^[13]
• 85% of accountants believe that the accounting profession needs to accelerate technology adoption to remain competitive internationally. ^[13]
• A recent study found that 45% intend to automate repetitive, time-consuming accounting tasks. ^[13]

Automation And Machine Learning

• Robotic process automation, data analytics, and AI are collectively driving the transformation of the audit process. ^[4]
• Research shows that 40% to 60% of the time accountants spend on the close process is looking for anomalies in transactions and account balances. ^[2]
• The ideal Time to Close is less than or equal to 1. ^[2]

Company Case Studies

• When nonprofit liberal arts college Naropa University started using Blackline, they discovered they had 2,000 General Ledger accounts they weren’t using. ^[1]
• Cybersecurity company Venafi’s monthly close process got longer and longer until it reached 15 business days; adopting Floqast reduced it to 10 days. ^[1]

Financial Close Software Providers

• A total of 21 providers were assessed: BlackLine, Board International, FloQast, Fluence Technologies, IBM, insightsoftware, Infor, Jedox, LucaNet, NetSuite, OneStream, Oracle, Planful, Prophix Software, SAP, Talentia Software, Trintech Adra, Trintech Cadency, Vena Solutions, Wolters Kluwer, and Workday. ^[12]
• For the 2024 study, ISG assessed software providers across three financial consolidation and close categories: Financial Close, Financial Consolidation, and Financial Close and Consolidation. ^[12]

Financial Close Challenges

• Nearly 90% of errors related to the financial close process are undetected until after the close. ^[26]
• An Ernst & Young study found that only 38% of companies have formal policies and procedures for their financial close process. ^[26]
• 44% of respondents cited errors due to manual processes as one of the biggest challenges during financial closes. ^[28]

Statistics And Surveys

• The accounting services global market value was $544.06 billion in 2020. ^[13]
• 90% of accountants worldwide believe there has been a cultural shift in accountancy. ^[13]
• The CPA Evolution Initiative will bring changes to the CPA licensure model starting in 2024, with a greater focus on technology in response to the shift in knowledge and skills required of newly licensed CPAs. ^[4]

Future Trends

• The future of the accounting industry: 7 important trends in 2024. ^[16]
• OpenAI’s ChatGPT is the fastest-growing app in history, reaching 100 million monthly active users in just 2 months. ^[16]
• According to The Future of Jobs Report 2023, just under 75% of companies surveyed expect AI to lead to high job churn. ^[16]

Financial Close Software Benefits

• Reduce provision times by 50%+ & be able to show back 80%+. ^[6]
• Acquired Sigma Conso in 2021, a European company with expertise in financial close management, which is a separate solution/product not integrated/embedded in Prophix. ^[15]
• After adopting Vena for financial close management, the company moved from closing their months on the 24th to closing on the 12th, achieving a remarkable 12-day improvement. ^[15]

Key Performance Indicators (kpis)

• You can expect 50-100 pages of new metrics each month totaling over 450 data-rich charts and graphs. ^[8]
• Receive immediate access to the prior 12-months of data when you subscribe today. ^[8]
• The additional fee of $695 will be added to your total. ^[8]

Customer Experiences

• Join over 1 million businesses scanning & organizing receipts, creating expense reports, and more with Shoeboxed. ^[7]
• Join over 1 million businesses scanning receipts, creating expense reports, and reclaiming multiple hours every week with Shoeboxed. ^[7]

Accounting Software Adoption

• According to Indeed, the average salary of an accountant is $55,459 per year, while the average salary of a designated CPA is $65,289 per year. ^[13]
• 43% of firms are making moves to downgrade their brick-and-mortar presence and or transition to a virtual-only presence (Wolters Kluwer). ^[13]

Financial Reporting And Data Management

• Produce accurate and audit-ready balance sheet reconciliations through automated matching of 3rd party systems as a foundation to accurate financial reporting. ^[30]
• Streamlining of data reconciliation and reporting from two weeks to 25 minutes. ^[31]

Employee Efficiency And Satisfaction

• Employees forget, on average, 70% of what they learn in training, within a day. ^[32]
• Join 6000+ monthly readers learning about best practices, solutions, and strategies to drive software adoption. ^[32]

Financial Close Innovations

• The 10 top financial close software for a stressless month end (2024). ^[23]
• Keeping ahead on your ASC 606 compliance and other business processes is one of the best ways to minimize risk and avoid accruing project debt that you’ll need to pay off in the future. ^[23]

Data Analytics And Visualization

• Data visualization tool market size is expected to reach over $22 billion by 2030. ^[34]
• Enterprises are on their way to harnessing the potential of converting big data insights into comprehensive visual information that accelerates decision-making. ^[34]

Financial Close Metrics

• Close the books 4x faster, collect over 95% of receipts on time, and get 100% visibility over company spending. ^[24]
• I have seen close periods from +2 to +10 business days. ^[25]

Financial Close Process

• The close process compares preliminary income statement data to plan and forecast and review 13 month moving averages. ^[25]
• The longest close time for any client is 5 working days. ^[25]

Financial Close Software Case Study

• Vena’s capabilities empowered Capstone to reduce their month-end close times by 50%, decreasing from 10 days to just 5. ^[17]

Financial Close Software Adoption

• SAGE has found that 90% of accountants think accounting is going through a cultural shift that favors technology. ^[18]
• “The Practice of Now” by Sage found that 67% of accountants agreed that cloud-based solutions have made their work easier and better. ^[18]

Financial Close Software Efficiency

• In another report by Accounting Today, 58% of organizations noticed and accepted the benefits of moving to the cloud and are now using cloud-based accounting systems. ^[18]
• The cloud accounting market is growing and is projected to reach 4.25 million by 2023. ^[13]

Financial Close Software Trends

• According to the Small Business Report Accounting, 60% of the small business owners feel that they might not have enough knowledge about finance and accounting. ^[33]
• According to ICAS, the percentage of small businesses placing accountants at the peak of their list for trusted advisors is only 30%. ^[33]

Financial Close Software Adoption Rate

• According to Sage (Sage Practice of Now 2018 Report), the percentage of accountants who prefer cloud accounting is 67%. ^[33]
• According to Accounting Today, 58% of large companies are already using cloud accounting. ^[33]

Financial Close Software Market Size

• The global accounting software market share is expected to be worth around $4.25 billion by the end of 2023. ^[27]
• According to Verified Market Reports, The Cloud Accounting Software market will reach an estimated valuation of US$ 4320 million in 2024. ^[33]

Financial Close Software Market Growth

• According to Forbes, the cost of labor is reduced by 50% with the help of cloud accounting. ^[33]
• According to Sage (Sage Practice of Now 2018 Report), the percentage of accountants who prefer cloud accounting is 67%. ^[33]

Financial Close Software Efficiency

• According to Accounting Today, 58% of large companies are already using cloud accounting. ^[33]
• 87% of companies have felt an acceleration in their businesses by incorporating cloud in their business processes, a McAfee Report. ^[33]

Financial Close Software Market Trends

• According to Xero, the companies that use cloud accounting exclusively saw a 15% growth in the year-over-year revenue pattern and were also able to get five times the total number of customers than the companies that don’t use cloud accounting exclusively. ^[33]

Financial Close Software Adoption

• According to a Sage report, 90% of accountants feel that accountancy is undergoing a cultural shift that is leaning more toward technology. ^[19]
• Here are the top 11 accounting trends to watch out for and implement in your firm. ^[19]

Financial Close Software Future Trends

• According to research conducted by Sage in 2019, 58% of accounting professionals are expected to automate tasks using artificial intelligence solutions within the next 3 years. ^[19]
• Firms in the US are projected to spend approximately $1.1 billion on blockchain technology by the end of 2022 (Statistica, 2020). ^[19]

Financial Close Software Future Trends

• Still, some emerging trends within the accounting field have gained such momentum in recent years that continued acceleration in 2023 seems all but certain. ^[20]
• A global survey of 260 CFOs found that nearly half of CFOs (48%) plan to invest in technology to streamline finance tasks. ^[20]

Financial Close Software Trends

• Even more striking, nearly all (99%) of those making technology a priority agree that technology updates will become even more important for both attracting and retaining employees. ^[20]
• According to Deloitte, 82.4% of public company hiring managers for finance and accounting report talent retention as a big challenge. ^[20]

Financial Close Software Trends

• No wonder 86% of finance executives say they’ve set their sights on achieving a faster, real-time close by 2025, according to Gartner, with more than half of respondents already deploying investments such as general ledger technology and workflow automation. ^[20]
• With the help of AI and ML in our system, we’ve achieved nearly 100% billing accuracy and 100% automation of our cash flow, and the percentage of manual journal entries we now perform is incredibly low. ^[20]

Financial Close Software Adoption

• To stay in the loop on output from the Future of Finance Leadership Advisory Group and to learn more about the 2023 Future of Finance Summit, follow along here and sign up for our newsletter. ^[20]
• Lawrence attended AICPA & CIMA’s 2022 Future of Finance Summit and is a member of the Future of Finance Leadership Advisory Group. ^[20]

Financial Close Software Automation

• Automatic recognition of Minority Interests liability, if the ownership is greater than 50% but less than 100%, and creating relevant postings in the consolidation entity. ^[21]
• AccountsIQ is an agent of Plaid Financial Ltd., an authorised payment institution regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 (Firm Reference Number: 804718). ^[21]

Financial Close Software Efficiency

• Typically condensed into a 10-day timeframe, the financial close happens every month, quarter and year to varying degrees of complexity. ^[22]
• Close checklist a checklist of all the processes that need to be executed along the record-to-report (R2R) journey, typically varying from 300 to 1,200. ^[22]

Financial Close Automation

• Automating manual and repetitive tasks is helping accounting firms save time and stay competitive.70% of companies have reported substantial ROI after using automation in their accounting processes. ^[29]
• Blockchain has brought the triple-accounting system to strengthen the 500-year-old double-entry accounting system further. ^[29]

Financial Close Software Trends

• According to PwC, 54% of CFOs prefer remote working as the permanent option. ^[29]
• At the same time, 66% of enterprises hold a central cloud team. ^[29]

Financial Close Software Trends

• During and after the COVID-19 pandemic, workers’ jobs rate suddenly rose. ^[29]
• According to the Guardian, 69% of employees wanted to move to a new role. ^[29]

Financial Close Software Adoption

• In June, close to 60% of top executives said their finance or tax departments were already using AI technology, according to a survey by KPMG, with 99% calling AI

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