Recently picked up a new client, one who was concerned that their current accountant was not looking after his business fairly. To check out the records, I visited the client, and, for the duration of my stay, I booked one of the Miami Beach Suites at this marvelous hotel.
What I found when I went through their records was shocking. The accountant was to blame only for not pointing out what they were doing wrong and not making suggestions on better practices. The clients themselves have to take a big portion of the blame for the way they keep their records. I thought I would share with all of you four ways that efficient accounting practices can help a business no end – in case you ever come across such a badly run business!
This area can be improved no end with online invoicing. Vendors can email their receipts in which then get integrated into the system automatically. That puts an end to waiting for invoices and playing a guessing game.
- Cash Cycle
If a company uses an integrated accounting system, they no longer have to worry about invoices being generated and then lost. Integration is a huge help when it comes to cash forecasting, accounts are more visible and customer billing information is held where it should be. That makes it easier to work out who is overdue for payment.
- Close and Reconciliation
Closing and reconciliation processes become much easier with an automated system. The entire process can be shortened and mistakes all but eliminated. SaaS – Software as a Service – can also carry out cash reconciliations using downloaded bank statements. This cuts the paperwork and the time spent by employees on manually reconciling accounts.
More and more companies are using automated data analysis using automated tools. This kind of system cuts down on errors and speeds up the process no end and human errors are cut out.
Companies need to evolve with the latest in technology and software, designed to help them make life easier. But, accountants also need to recognize when a business needs to adopt one or more integrated solutions and not just leave them to make a deeper mess of things.