Month-End Close Procedures Improvement by Using the Army's After-Action Review Process

Episode  #149: Month-end doesn’t have to feel like a rolling emergency. We walk through a proven, blame-free framework—the U.S. Army’s After Action Review—to turn your close into a reliable, data-driven process that gets faster and more accurate every cycle. If your calendar is packed and bottlenecks keep returning, this is the practical reset your team needs.

We start by reframing performance reviews as a leadership habit that compounds. Then we break down the AAR into three simple stages: plan, prepare, execute. You’ll learn how to define clear success metrics for close, set roles and handoffs, and create a safe environment where facts matter more than opinions. We show how to gather evidence during the cycle—timelines, task logs, error heat maps—so the review pinpoints root causes and turns observations into action.

From there, we dive into the backbone of a modern close: standardized processes, integrated systems, and tools that truly enable collaboration. Expect concrete ideas for automating data flow, reducing manual entries, and mapping end-to-end dependencies. We share ways to align accounting and FP&A early, cut late reclasses, and measure progress with a focused KPI set: close duration, on-time tasks, aged reconciliations, and post-close entries.

Episode outline:

1. The U.S. Army’s After-Action Review process,
2. Let’s always focus on processes, systems, and tools, and
3. Using the After-Action Review system to evaluate our month-end close procedures.

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Transcript

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Stephen McLain: 0:05

You have a process to review how well your team performed during projects, critical tasks and even for month end close, reviewing team performance is often overlooked because of the time available each day, we are all scrambling for more capacity. Our calendars are filled with meetings and requirements. That's how it happens in finance and accounting. However, reviewing team performance must be a key leader task for it. Can identify where in your processes, systems and tools that weaknesses or obstacles may hurt accuracy and timeliness, but also causes much frustration on your team. I am an advocate for using the US Army's formal process to review team performance, so I will show you how for month end close over the next several minutes, that you can use this to improve your process. Please enjoy the episode. Welcome to the finance leader podcast where leadership is bigger than the numbers. I am your host. Stephen McLain, this is the podcast for developing leaders in finance and accounting. Please consider following me on Twitter, Facebook, Instagram and LinkedIn. My usernames and the links are in this episode's show notes. You can also follow finance leader Academy on LinkedIn. Thank you. This is episode number 149, I will be talking about how to effectively use the Army's after action review process to evaluate and to improve the month end close, and I will highlight the following topics. Number one, the US Army's after action review process. Number two, let's always focus on processes, systems and tools. And three, using the after action review system to evaluate our month end close procedures. Are you currently reviewing the performance of your team after completing a key project or complex task requiring more than one team member? Most will say that there's no time to look at how we did. And I would say that I understand that you have a capacity issue, but a key component of leadership is to capture what was done right and what could have been done better, so that for the next project you can apply those lessons learned. The idea is to keep improving, but to do so requires commitment and an investment in time. The last time I shared episode number 148, from comfort to excellence, aligning finance teams for real impact, comfort feels safe, but it quietly drains our careers and our teams. In the episode I show how alignment, clear standards and better conversations can turn routine finance work into strategic results. Please go back to listen to that episode in case you missed it. Now, evaluating performance as a team provides the opportunity to seek input from everyone involved. It helps to accept personal accountability, to improve in the next project and to improve our overall teamwork, collaboration, our understanding of the problem to be solved, and many other team oriented work activities, one of our most important processes is month end close. We all know what it means to start the close process. It usually will take half of our month, and it requires meticulous planning and coordination. It takes a deliberate process to close the books in a timely and effective manner and in accordance with gap and applicable laws, plus complying with our own internal procedures. Month end close can be clunky and time intensive, while also trying to conduct your normal tasks that are required every day and every week. Many of you know that my first full career was in the US Army, more than 20 years on active duty, we would evaluate every team exercise, every major project and every training event, evaluating team performance is part of the culture of the army. We want to be better. We need to improve. Because what our country and our allies ask us to do every day, if it was a collective event, we honestly evaluated that event for our performance so we can figure out how to do it better, how to communicate better, and what training we needed to improve on what resources were missing or inadequate, and much more, we looked at how we planned the event, how we prepared for it, and how we executed. So we will use the simple format of plan, prepare. Prepare and execute, to look at the exercise, training, event or operation we just performed with the focus on improving for the next time, please subscribe to the podcast on the platform you are currently listening to, and also please subscribe to my weekly email. What we want to do is to create an environment of continuous improvement, to invest the time and effort to ensure we can perform our key tasks to the best of our ability as a team and as individuals. Once our staff is trained and well coordinated, we need to review what other resources we may need or upgrade the resources we currently have. I am always supportive of the team and the individual who wants to improve. We never embrace complacency and we never settle for doing just a good job. We look at ways to be better in our processes, in our methodology, in our skills level, and within the context of the resources we do have now, let's talk about how to effectively use the Army's after action review in month end close to improve the process. Number one, what is the US Army's after action review process? The after action review is a structured professional discussion conducted after a mission, a training event or operation to analyze what happened, why it happened, and how to sustain or improve future performance. It promotes shared learning, rather than blame or critique, and reinforces strengths while addressing deficiencies in the plan phase of the US Army's after action review process leaders prepare the foundation for an effective and focused discussion by defining the purpose, scope and logistics of the review. This phase begins immediately after or even during a training event or mission, when facilitators identify what specific actions or objectives will be reviewed, who will participate and what resources or data are needed to support the discussion the leader reviews the event's training objectives, collects key observations, gathers input from participants and prepares visual aids or performance data. A critical part of this phase is selecting a neutral, comfortable environment that encourages open, honest communication, without fear of blame, experiences into actionable improvements for future performance. In the Prepare phase, the leader organizes the materials, data and environment needed to conduct an effective and meaningful review. Preparation involves collecting and validating key information about the events, such as timelines, mission, objectives, results achieved, and any relevant performance metrics to ensure the discussion is fact based rather than opinion driven. The facilitator identifies major events, decision points and outcomes to help structure the review flow and develops discussion aids like charts or slides that visually reinforce Key learning points in the execute phase of the US Army's after action review process, the facilitator leads the structured discussion that allows participants to analyze what happened, why it happened, and how performance can be improved for future tasks. This phase begins with setting the tone, reinforcing that this process is learning, focused and non punitive, and reviewing the mission, objectives and the plan versus actual outcomes. The facilitator guides the group through a chronological or event based review, encouraging open participation from all perspectives, key questions such as, what was supposed to happen, what actually happened? Why did it happen? And what can we do better next time drive the discussion, the facilitator ensures facts are separated from opinions, lessons are clearly identified, and the conversation remains respectful and focused. By the end of the execute phase, the group has collaboratively identified successes, root causes of shortfalls and actionable steps for improvement, turning experience into collective learning. Number two, let's always focused on processes, systems and tools, a well managed month end close is one of the most critical responsibilities in any organization. It delivers the financial integrity leadership depends on for accurate decision making. Yet for many accounting teams, the close can still feel like a race against time marked by late nights, manual entries and reconciliation bottlenecks, improving processes, systems and tools can transform the recurring cycle into a streamlined, predictable and value driven operation that strengthens both efficiency and confidence. Evidence in financial results. A successful close starts with disciplined, standardized processes. Many organizations still rely on localized knowledge, spreadsheets and inconsistent procedures across departments, which then introduces errors, delays and rework. The first step to improvement is to map the entire closed process end to end, identifying every task, handoff and dependency. Even with disciplined processes, a slow or fragmented system environment can still limit performance. Modernizing financial systems improves both accuracy and speed by automating data flow, integrating sub ledgers and reducing manual journal entries. Tools bridge the gap between processes and technology, enabling the team to work smarter and not harder. Finance teams should evaluate whether their current tools enable true collaboration between accounting fpna and business partners, or simply replicate manual work digitally. One of the most impactful enhancements to the month end close process is bridging the gap between accounting and fp and a when both teams align, early sharing, preliminary results, variance, expectations and reclassifications, the close becomes faster and more insightful. As we have heard before, you can't improve what you don't measure. Establishing closed performance metrics helps track progress over time and drive more accountability. Number three, how can we use the Army's AAR system to evaluate our month end close. The goal of applying the US Army's after action review process to corporate accounting is to transform the month end close from a compliance exercise into a continuous improvement cycle. By using structured reflection, accountability and collaboration, finance leaders can make each close faster, cleaner and more accurate, while building a culture of shared learning and ownership for the planning phase, here are a few suggestions to consider reviewing. Did we define clear success metrics for the close process? For example, close by day five, zero post, closed journal entries or even full reconciliation? Did we identify key participants, such as accounting managers, staff accountants, fpna liaisons and IT support now? What about establishing a closed calendar and document dependencies? Did we communicate expectations early to clarify roles, handoffs and also checkpoints now for the prep phase, here are a few areas to review. Did you track timing and completion of each closed task? Did you document bottlenecks, delays or issues as they occurred. Did you record communication gaps or unclear ownership? What about capturing positive deviations or improvements observed during the cycle now for the execute phase within three to five business days after the close conduct an after action review meeting with all the participants after the review process is completed, ensure you develop a plan to integrate the findings into next month's month end close process. Now, due to the complexity of month end close, the Army's after action review process is perfect to review how we can do it better so we are prepared each month, the month end process is our most complex and recurring super event, involving nearly everyone in fpna and accounting. So that's why it is so fitting to have a review process to find areas for improvement, now for action today. Does your organization have a formal way to review month end process, if not, consider using the US Army's after action review process to review what happened and what could be better. The idea is to have a continuous improvement environment so we all get better at the jobs and processes we have. Today I talked about how to effectively use the Army's after action review and month end close to improve the process, and I highlighted the following points. Number one, the US Army's after action review process. Number two, let's always focus on systems, processes and tools. And three, using the after action review system to evaluate our month end close procedures. There are some amazing benefits you can achieve from using the Army's after action review process every time, which include accelerated closed process by identifying and removing recurring delays, improved accuracy with fewer post close adjustments, greater. Accountability as each team member owns their process, stronger collaboration and learning culture and a shift from reactive problem solving to proactive improvement. I hope today's episode can help you improve and even design a better month end close process for your organization. I hope you enjoyed the finance leader podcast. You can find this episode wherever you listen to podcast. If this episode helped you today, please share with a colleague until next time. You can check out more resources at finance leader academy.com and sign up for my weekly updates so you don't miss an episode of the podcast, and now go lead your team, and I'll see you next time. Thank you. You.