The accounting and finance department of any business is critical to the organization’s success. If this department struggles with inefficiencies, the entire business will suffer. When it runs smoothly, however, business operations are streamlined, regulatory standards are easier to meet, and external goodwill increases. This is one department where delays and errors remain unacceptable.
One way to increase the efficiency and effectiveness of this department is to invest in technology. Doing so may also help to reduce costs, as fewer employees will be needed to perform the same functions. With the help of technology, the business will run at peak efficiency and remain competitive. What are some things a company can do today with the help of technology to improve the efficiency of the accounting and finance department?
Benefit From Automation
Automating tasks serves a dual purpose. Not only does it reduce labor hours, but it also improves employee morale. No person wants to spend their days doing a job that could easily be handled by a machine. Talk with junior-level employees to learn which tasks they feel should be automated. As they have grown up with technology, they can make suggestions of technology that senior executives might overlook or not be familiar with. The team responsible for purchasing the technology can then research the options to see if they are right for the organization.
Communicate with the Team
Before purchasing any technology, speak to those individuals working in the accounting and finance department. Don’t overlook those lowest on the totem pole either, as they are the ones who will use the program on a daily basis. They know which tasks should be eliminated because they aren’t necessary and how to make certain activities are done in less time. In addition, they can make suggestions on how to improve collaboration among different teams.
Document every suggestion. Go through the suggestions to see which appear regularly, as that shows there is an area of concern. When choosing software, ensure it addresses those problem areas. For example, learn about the NetSuite ERP capabilities and ensure it addresses those specific areas before making a purchase.
Cross-Train Employees
Personnel shortages remain a concern among employers today. To prevent this from becoming an issue, it is wise to cross-train team members. By spreading the knowledge throughout the organization, a company can ensure essential operations continue even when several team members must be absent or leave the organization. There won’t be a knowledge gap in situations such as these.
Regular process training is one way to prevent personnel shortages, and back-ups for every role in the organization are another. Every essential function should also be documented, so employees have a reference guide if they must take on another position unexpectedly. They will have somewhere to turn if they have questions, even when the employee who normally handles this task isn’t available.
Cloud Computing
Use the cloud to keep data safe while allowing it to be accessed by multiple people at the same time. This allows teams to collaborate, even when they are in different locations across the globe. Additionally, the use of cloud computing technology makes it easy for employees to work from home, as all information is stored in the cloud.
Benefit From Process Metrics
Process metrics allow a company to compare the current period’s activity to that of previous periods. They serve as a benchmark for employees. Nevertheless, the metrics must be easy for employees to understand. Metrics a company may wish to use include cycle time and accounting ratios.
Collaboration Among Departments
Employees in the finance and accounting department don’t work in isolation. They must gather data from other departments within the company. Ensure this data is submitted in a timely manner to reduce friction. If problems arise between departments, address them immediately. Doing so helps to ensure the flow of data continues smoothly.
Deadlines Increase Efficiency
Every business owner should establish deadlines for workers and make adherence to the deadlines mandatory. Companies find two major time and money wasters are lazy workers and individuals who lack discipline. Every accounting and finance department must submit financial statements in a timely manner and meet internal controls and compliance policies.
Without these statements, senior executives may struggle to make decisions. If they do come to a decision, it could be the wrong one because they lacked critical information that would be found in the statements. Every team member must be held accountable when it comes to meeting deadlines to ensure this doesn’t happen.
Financial Statement Preparation
Employees must prepare statements in a timely manner to make certain any issues are caught early. In addition, having these documents early allows the business to spot opportunities and capitalize on them. Business owners find having these documents created regularly allows for better compliance and informed decisions. To ensure these reports are available when needed, the company must make the creation of these reports a planned activity. Work needs to be allocated among the team, and collaboration must be emphasized.
Process Invoices and Receipts in Batches
A person might process each invoice and receipt as it comes in, thinking this is the best way to ensure nothing is overlooked. However, batch processing is more efficient. Establish a system where receipts and invoices can be collected and set aside a specific time each day or week to process this. This saves not only time, but effort as well.
Invest in an Accounting System
Find an accounting system that is user-friendly. Accountants tend to focus more on numbers than on technology. They need something that is easy to learn and easy to use. If the system confuses them, it will probably sit idle while they continue to use the old ways. Business owners cannot assume the finance and accounting department can be allowed to operate independently. This is one area that requires constant oversight due to the nature of the data found in the department. When this department is lagging in any way, take quick action to get it on the right track. The importance of doing so can never be discounted.
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