It's the most wonderful time of the year—no, not the holidays, but fiscal year-end! For lab managers and operations teams, fiscal year-end (FYE) activities can pile stress and administrative work onto already-full plates. But, just like a well-executed scientific experiment, FYE is an opportunity to bring structure, planning, and analysis into play for successful results. By viewing the process with a scientific lens and leveraging the right tools and strategies, your lab can streamline FYE.
Formulate a hypothesis = Set financial goals
At the start of the fiscal year, organizations set financial goals and projections, much like a scientist must start with a hypothesis. These goals serve as an "educated guess" on how the year will perform and must be evaluated as you close out the year.
- Suggested tools: Accounting platforms like Xero, Intuit QuickBooks, and NetSuite can help establish and monitor budgets, set revenue targets, and track expenses. Lab supply marketplace ZAGENO's seamless integrations with those and other platforms further speed up month-end and year-end closes, streamline invoice and purchase order matching, and empower more accurate expenditure forecasting.
Experiment design = Organize your financial records
Before starting an experiment, a scientist fastidiously prepares the setup, ensuring all variables are controlled. In fiscal year-end terms, this step requires the same skill of organizing financial records to avoid last-minute scrambling.
- Suggested tools: Use tools like Expensify or Dext to manage and organize expenses. These tools automatically scan receipts, manage travel expenses, and store essential financial data in one place. ZAGENO further helps labs with this task by serving as a single supplier of record with one bill-to, consolidating purchase records from thousands of suppliers into a single, easy-to-manage platform, simplifying documentation and reporting.
Data collection = Record transactions accurately
Scientists meticulously collect data during experiments, just as labs must similarly record every transaction throughout the year to maintain accurate financial records.
- Suggested tools: In addition to the accounting platforms listed above, ZAGENO allows labs to easily track spending on materials and supplies across different projects, scientists, and cost centers, helping ensure financial records remain categorized, up to date, and precise.
Data analysis = Review financial performance
In science, data analysis is key to understanding whether your hypothesis was correct. Similarly important is reviewing your lab's financial reports at FYE and comparing them to the year’s goals.
- Suggested tools: Data visualization tools like Power BI or Tableau can turn financial data into clear, visual dashboards for trend analysis. ZAGENO’s spend dashboard and reporting features offer superior data analysis and budget utilization insights.
Conclusion = File reports and plan ahead
After reviewing the data, scientists draw conclusions and publish findings. For labs, this involves filing financial reports and planning for the next fiscal year.
- Suggested tools: For tax filing and compliance, TurboTax Business or Avalara offer streamlined, automated solutions that integrate with accounting software. ZAGENO helps by providing one true source of procurement data, making it easier to calculate total expenses for year-end reporting and to plan budgets for the upcoming fiscal year.
Peer review = Audits and compliance checks
Just like a peer-reviewed scientific experiment, businesses undergo audits to ensure financial statements are accurate and compliant.
- Suggested tools: Platforms like AuditBoard manage internal audits, identify compliance gaps, and ensure accurate reporting. ZAGENO offers a clear audit trail of all lab purchases, facilitating easy compliance and smooth audits.
Bringing the fiscal year-end process together
By approaching FYE as a structured process similar to conducting a scientific experiment—and leveraging the right tools—lab managers and operations can streamline both financial and operational tasks, ensuring a smoother, less-dreaded, year-end close.
Contact ZAGENO today to learn how our AI-driven marketplace can simplify your lab’s year-end process and set you up for success in the upcoming fiscal year.
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