June of 2021 has already passed, and you have managed to pull the year-end closing. But it was a very painful process, wasn’t it? The difficulty is normal because it is a very rigorous process for all microfinance companies in Bangladesh and beyond. What if you have a solution that will help you simplify and speed up your operations, including the year-end closing report? Wouldn’t it be amazing? Well, don’t be tempted; it is not a concept anymore.
Running a microfinance business is challenging. The microfinance regulatory bodies, small loan profiles and unaware borrowers are the reasons behind these difficulties. But the toughest of all is making a year-end closing report for MRA.
For an MRA year-end report, you need to comply with many regulations. And you have to be very careful about every detail. But don’t worry; microfinance software takes a few clicks to prepare your report.
Importance Of MFI Year-End Closing Report
So how important is the year-end closing?
MRA report is mandatory for microfinance organisation’s existence. Microcredit Regulatory Authority (MRA) facilitates and controls all the MFIs in Bangladesh. Likewise, other nations have their respective authorities controlling their microfinance companies.
So, your organisation prepares year-end closing reports, particularly for microfinance authorities. The report projects anything that you have done in the fiscal year along with your financial progress. But if your report projects any violation of the regulations, that might lead you to grave danger.
The report also serves other important purposes for your organisation. It helps you understand the whole scenario, the financial health and the yearly growth of your organisation. By understanding all those, you can take the necessary steps for the next year. Therefore, the year-end closing report is vital to your microfinance business.
Difficulties of Preparing Year-End Closing for MFIs
For microfinance organisations, the entire operation is difficult. It involves risks, effort and patience. It is because they deal with unprivileged people and small loan profiles without collaterals. But when it comes to year-end closing, our prime difficulty lies in the time, workforce and a pile of information.
Preparing the year-end closing report takes a substantial amount of time. You are not just preparing your financial reports; rather, it is more than that. You need to put your projects, social activities, the impact of the work and so on. In addition, you also compile information about the source of funds. Furthermore, you need to show how you have spent that amount. And all these require time.
Many microfinance companies keep working on preparing the year-end closing report for months. It requires many people and hours of labour. Eventually, it increases your cost. On the other hand, your workforce can miss important information. And it’s normal because human errors are inevitable.
Analyzing Pile of Papers
Year-end closing sounds awful because we see piles of paper works. Just imagine, you are sitting with a pile of papers with small details. You need to compile them to make one report. And a load of tension to make that report right in every way to fulfil MRA requirements. This whole process is a burden for anyone, especially for the owners.
So, the totality of the process creates tension. But don’t worry, no problem comes without a solution.
End Your Hassle for Microfinance Year-End Closing
The world has come far away from the manual operation process. But it is not surprising to see many microfinance organisations are still running on paper. And if you are one of them, you don’t need to worry. Some solutions can ease your entire operation as well as the year-end closing report.
We understand that at the end of the year, you need your reports. You need to meet the deadline for the MRA. At the same time, you want to keep your day-to-day operations running. Besides, you need to submit a flawless report to the microcredit authority.
In this situation, only a comprehensive microfinance solution can solve your problem. Good software comes with tons of reporting options. It also includes MRA compliant reporting features. So, if you have MRA complement software, you can manage your operation seamlessly. Furthermore, you don’t have to spend person-hours behind the year-end closing report.
Recollect your memory of the recent year-end closing, and think about the next year. Would you still want the hassle, or do you want to have a smooth experience finished in a few minutes?
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