Effective accounting processes are essential elements of every business – and accuracy is absolutely critical. But, even if your processes work, could they be even better? Let’s take a look at a few ways you can improve your accounting process, all without compromising on accuracy.
Reconcile regularly
Reconciling both accounts payable (AP) and accounts receivable (AR) are essential accounting processes. However, you do not technically need to do so until the end of each accounting year – and trying to do everything at once in order to report your financial position can be extremely inefficient, not to mention stressful for yourself and your team.
Instead, streamline your AP and AR processes by reconciling as you go, or at the end of each month, whichever makes the most sense for your business. You can also find AI software that undertakes supplier statement reconciliation for you – it simply pulls the relevant information from your accounting system and highlights any discrepancies automatically.
Using automated AI software for your reconciliation processes will not only not compromise on accuracy, but it can also improve accuracy. As it is powered by artificial intelligence, it will eradicate the risk of human error or missed discrepancies in your data.
Utilise cloud-based technology
After reaping the benefits of working from home during the coronavirus pandemic, many people are opting to stay fully remote or operate flexibility, rather than return to the office. Though this percentage is lower for finance compared to other industries, one survey still found that 47% of finance leaders did not expect their team to return to the office full time.
With this in mind, it is important to ensure that your processes suit your employees, whether they work from the office, from home, or swap between the two. In order to do so, you might consider using cloud-based technologies to carry out your tasks.
Cloud-based technology is hosted on the internet, which allows people to access everything they need from anywhere they need to, so long as they have a device with internet connectivity. Switching to cloud-based computing can streamline your processes and future-proof your business, all without compromising on the accuracy of your reports.
Do more than just comply
Of course, one of the main concerns of accounting processes is to comply with the relevant laws and regulations. However, if you treat accounting as merely an act of compliance, you might find yourself only doing the bare minimum requirements.
Not only do financial processes and reports ensure you comply with the necessary laws, they can also provide you with invaluable insights into how you might improve your other business processes.
For example – in the current climate where many businesses are cutting their marketing budgets, accounting processes can actually highlight other areas a business might better apply budget cuts, or, identify ways in which the marketing budget might be spent more efficiently.
Constantly evaluate how things might be improved further
With the above tips in mind, you will have a few tools in your arsenal to begin improving your accounting processes. However, once you have implemented these techniques, it doesn’t stop there. There are innumerable ways in which accounting processes and accuracy can be improved, so commit to consistently analysing and evaluating in order to constantly improve your business’ overall chance of success.