One of the most important puzzle pieces for businesses in finance and accounting. The records and process is that which involves how many, and the financial data of a business is then converted into useful information for those who make the biggest decisions. It’s so important then, that you are hiring people who know exactly what they are doing with regard to accounting so that you know that your money is going to be put in the right place.
Accounts and financial information have to be appropriately and promptly processed and it has to be done in an efficient way. There are so many benefits of accounts payable automation that your business would benefit massively if things were more efficient. Below, we have a list of suggestions that you could use to help to create a much more efficient accounting process no matter the size or type of your company.
- Make sure that your deadlines on your cutoff policies are very strict. Of course, this can come across as too generic because it’s a given for most people. It’s something that should be emphasized however, especially throughout your accounting department. Timeliness is a must when it comes to vital documents or reports being submitted on time. Payroll, for example, has to be submitted by the cutoff date or people will not get paid for their wages for that month. You also need to ensure that you are accurate and timely in paying your actual bills so that your business credit doesn’t fall foul. If you enforce these with strict consequences you will ensure that you are not going to compromise on accuracy. Nobody cares why you can’t do it if you are not producing accurate and timely financial statements. They will only care that you didn’t do it on time.
- Invest in your software. While we’re talking about accounting process automation, you should consider the software that you’re currently using for your accounting. It’s a rarity now that a business wouldn’t use accounting software, because it’s about being up-to-date. Cloud based accounting software will help you to adopt something that’s easier and faster to use. Let’s not forget that we are aiming to be more efficient here, and that takes some time, and some investment, two. With the correct investment in your software, your business is going to thrive much better. And that’s exactly what you should want for it.
- Process your timesheets and reports in batches. Isn’t just about processing every single new invoice or cheque when you process and receive them. Make sure that you set aside a day or a time in the week or month where all processing occurs. Batch processing saves time and effort, so if you are going to process checks, make sure that these are all done on a Monday so that they clear for a Friday. The same could be said for requests for reimbursements so that you can deal with them in one go.
- Efficiency comes from best practice processes. For example, accounting isn’t new. It’s been around for hundreds of years and it’s been improved long since the days of the Abacus. Over the course of financial evolution there are best practices that have emerged. From the need to adhere to the principles of consistency and good faith, to non compensation, prudence and continuity. Full disclosure should also be something that happens in your business. All of these should serve as a guide to help you to be more compliant with the government regulatory requirements.
- Lean into automation. We cannot stress this one more! Today, we live in a digital world which means that all payments and invoices must be automated. You do not need to waste your time manually dispatching these functions when you don’t have to. Financial record keeping has to be done with accounting software automated so that things do not run behind. You can actually employ automation for accounts payable and receivable processes, but with bills of lading, proof of delivery, order tracking correspondence and any monthly close processes, all of these things can be automated, to.
- Invest in education. If you want to be more efficient in your accounting processes, learn how to do it. If you are a one man band and where most you know about income and outgoings is what you do per month in your wages, you need to expand this for your business. Investing in the right education for yourself will help you here. Alternatively, you could outsource somebody else who already is educated in it and already knows how to do the accounts. This way, they will be able to do it all for you for a fee.