Tips to Improve Business Accounting Efficiency

If you are the owner of a rapidly growing small-scale business, hiring a business accountant is perhaps the best thing you can do for yourself and the firm. Besides crunching the numbers, a professional business accountant can offer comprehensive financial insights at different milestones. Once you have a business accountant in place, you have to create an environment that allows them to work efficiently. In fact, the accounting department is one area that thrives on efficiency. Here are tips to make your business accountant more efficient. 

Incorporate Cutoff Policies — Small-scale business owners need periodic financial statements to help them make critical decisions affecting various aspects of the company. Therefore, accountants must prepare books and financial statements on time. Unfortunately, it can be challenging for an accountant if different departments submit their invoices and expense reports whenever they like. In such cases, an accountant is forced to make adjustments constantly as reports arrive on their desks at different times. Unfortunately, it can significantly impair ongoing financial analysis. Therefore, you must put cutoff policies regarding submitting and recording invoices and expense reports in place. Adhering to the policy improves accounting efficiency and makes reports reliable at every growth stage.

Purchase Accounting Software with Remote Accessibility — One of the primary reasons accountants use accounting software is to improve efficiency. However, if your accountant is forced to crunch numbers outside an accounting software, it beats the purpose of investing in such technology. For instance, an accounting software restricted to the office can force accountants to use other less advanced reporting programs. However, it can lead to a backlog of tasks, especially during weekends and holidays. Thus, it is prudent to invest in accounting software that your accountant can use or access remotely. For example, if an accountant receives an expense report on the last day of submission, they can update the entries on the software even if they are at home.

Standardise Chart of Accounts and Codes — It is not unusual for different divisions, units and subsidiaries of a business to use different lists of accounts/codes then consolidate a company's overall ledger. Most firms do track each division's performance. Although it is an understandable policy, it is riddled with various inefficiencies that make life difficult for an accountant. Rather than allocate different accounts, business owners should use the same list of accounts found on a company's general ledger. Standardisation of accounts and codes promotes efficiency, guaranteeing accurate reporting during consolidation.

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