First we get to know your business operations, which doesn’t take too long because we’ve had a lot of experience in Accounting Systems. Then we create create steps to improve them. These are the 2 areas of an Accounting System:
The modern world is great! There are 1000s of applications out there (most of which are specific to your exact Industry), all of which can link together around your Accounting software (Xero) Financial reporting is the glue that sticks all pillars of your business together, especially Sales and Operations.
What you can achieve with automation in software today, 10 years ago used to be reserved only for the largest corporations. You should have at least 1 operations package which your team lives with to run your business. This should be linked to your financial package, which brings a level of automation that makes you more efficient.
Your business will also be worth more because someone buying it will have an almost fully systemised business process. Your financial reporting can then have the room to provide you with all the information you need, in however much detail you need, for example profit by product or client.
Your team play a big role in getting this Accounting system both setup and to keep it running. There are 2 main parts in ensuring the team plays its role properly:
1. Getting them on Board
If your team are not on board with the system then it will not work. They must know why they are now being told to do certain things differently, by that we mean they must see the end result and how what they’re doing connects to that end result.
For example if we’re now asking a certain staff member to submit invoices they pay for through a phone app then they won’t mind because they submit invoices anyway and this is just an easier way of doing it. But if we’re now asking them to make a note on the app of which product it’s for, which client it’s for, or which location it is for then they may not like it. It’s something different than what they’re used to and we need them to do it 100% of the time, not 90%! If they are shown the full Accounting system process, how this record moves through the system to become the flashy top-level reports that runs the company better then they have something to become engaged in.
- Maintaining the system
Someone needs to manage the entire system (software and team) to make sure the information is accurate and up to date.
It is easy to achieve a report at the end of each month or week. What’s hard is making sure the information is accurate! What’s the point in having profit per location if the figures are actually wrong?! You’ll make incorrect decisions, or spend more time figuring out if the information is correct than using it to improve your company.
Did you ever here the saying that 20% of the effort brings 80% of the results? It’s true, but in Accounting, unfortunately, if the reports are only 80% there then the profit figure could be out by 100%!