Is Your Accounting System Keeping You from Achieving More?
Rose Report: Issue 50
By Ted Rose, CEO, Rose Financial Solutions
They say, “Time is money.” As successful CEOs know, time is a valuable asset and one that once spent can’t be recovered. So why is it that some small- to mid-size company leaders are still spending a lot of time maintaining manual accounting processes when with the right accounting processes and software CEOs could work smarter and faster and use their time growing their business?
- Are your accounting processes automated?
- Does your accounting system provide the insight you need to make informed decisions?
- Do you enforce risk management processes?
- Is your accounting system scalable?
If your accounting processes are time consuming and aren’t giving you the information you need to make sound business decisions, chances are you are losing money and your accounting system is keeping you from achieving more. Here are the top reasons why companies focused on growth should evaluate their current accounting systems.
Efficient Financial Processes
As a company grows, its accounting department’s workload increases too. Companies without a robust accounting system will face substantial challenges, ranging from processing more employees in payroll to manually paying invoices and managing approvals. Manual labor will become more tiring and less cost-effective, and financial clarity will become more difficult to come by as you continue to build your organization. Replacing manual accounting and financial operations with centralized, automated, and standardized ones not only saves time but reduces human error and provides greater insight into the fiscal health of an organization.
Financial Insight for Informed Decisions
Companies are increasingly relying on data-driven information to make better business decisions. Financial statements, project reports, department reports, KPIs, ratios, and other financial information and reports should be generated in a timely, accurate, and easily accessible manner via a well-functioning system. The only way to really comprehend your company’s profitability, cash flow, and enterprise value is to do so.
Risk Management
The risk of fraud is on the rise. That’s why it’s critical to implement accounting best practices that not only prevents employees or others from defrauding the company, but also provide a clear picture of its finances. With control structures in place, the risk of fraud decreases. With this in mind, businesses should utilize finance and accounting systems that automate activities and enforce protocols that only allow individuals with authorization to access, review, and approve payments.
Scalability
Often, companies select a finance and accounting solution that is a short-term fix for its pain points. However, companies aren’t stagnant. As a result, you’ll need a system that can scale and adjust to meet your needs today and into the future not only for the number of transactions processed but also from a technology integration standpoint.
Don’t let your accounting software give you growing pains. RFS’ Finance-as-a-Service (FaaS) is a cost-effective, scalable solution that grows with your company and provides the advantage of an ERP without having to abandon your current accounting and finance system. Please schedule an introductory call for more information on our FaaS solution.
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business.
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