Click here to
Get an instant quote

The Importance of Reviewing your Accounts Processes

Businesses face a range of issues, and one of them is keeping up with day-to-day tasks such as keeping their accounts in order. Most firms realise that keeping accurate and up to date accounts benefits their business. As a result, they set up robust processes and stick to them.

Why review your accountancy processes regularly?

This is good practice, but there is a potential issue. The majority of firms rarely review their accountancy processes. As a result, many companies end up with inefficiencies and issues in their accounts departments.

Reviewing your processes improves efficiency

Often, companies end up carrying out processes that are no longer necessary or beneficial. An example of this is keying in data for reports that are rarely, if ever, used by the business. Over the course of a year, this can waste a lot of time. That time could be spent far more productively.

Using out of date software

Accountancy software is not cheap, so many firms avoid updating it without realising that doing so is usually a false economy. Keeping accountancy software up to date can make the process of data entry far more efficient.

It also opens up the opportunity to get more out of the data held within the firm’s accounts databases. Using accurate and more detailed reports provides better guidance when important decision about a firm’s future are being made.

Many firms have implemented time consuming workarounds to help them to handle changes in legislation, rather than invest in the new software and training to implement it. Over the course of a few years, firms can easily end up running several systems and, as a result, have to enter several key figures multiple times. Of course, this is a waste of money, but many firms do not realise they are in this situation because it is something that has just evolved over years almost crept up on them.

Save money

Many firms find that reviewing their accountancy process helps them to make their accounts team more efficient. The review process can be a catalyst for change.

It also prompts firms to assess whether outsourcing their accountancy tasks makes financial sense on a regular basis. The fact that labour costs are rising steadily means that a company that decided it was cheaper to do its own accounts a couple of years may find that is it is cheaper and more efficient to hire an accountancy firm instead.

Posted by Peter
October 8, 2015

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment