Money is the soul of any business, and the whole point of starting a business is to make a profit. However, to do this efficiently, proper accounting is key. No doubt, financial management is crucial to the success of every organization, including startups. One of the wisest decisions you’ll make as a business owner is to have a dedicated accounting team saddled with the responsibility of keeping accurate financial reports. This way, you can make guided decisions and achieve your business goals faster.
On that note, here are three ways you can adopt as an entrepreneur or chief financial offer (CFO) to improve your accounting department.
1. Outsource various tasks.
You’ll likely agree that the accounting team of every company needs continuous improvement to remain efficient. However, you won’t always get things right from the start, hence the importance of outsourcing. If you’re not taking advantage of outsourcing practices, then you probably haven’t heard of it, or you choose to ignore the benefits.
Whether you’re a large business owner or a new startup, outsourcing some of your business operations is a good idea and can save you money in the long-run. Luckily, accounting is one of the many departments that you can easily outsource. Many accounting firms offer outsourced or fractional CFO advisory services to both large and small business owners. This third-party CFO service is beneficial for those who don’t want to retain an in-house accounting department yet want their finance effectively and timely managed.
What’s more, if you don’t want to spend lots of money on training, outsourcing will give you access to ready financial management experts from around the world. You’ll do well to employ a CFO advisory service with a track record and years of experience.
2. Bring in sophisticated technology.
To say that technology is fantastic is almost an understatement. There’s virtually no industry, organization, or business unit that technology has not significantly improved the operation and contribute to increased revenue. From the banking industry to even the movie industry, technology has helped many companies solve the “how to increase sales” problem.
Gone are the days of cumbersome manual tasks. If you want an efficient accounting department, you need to automate various processes, especially repetitive tasks. Your accounting team will find it easier to complete their daily routine. This can save you many hours, which you can utilize to manage your business profile, improve your sales strategy and customer experience, and generate new customers.
Also, tax periods can be hectic, so an accounting department with an automated operation system will undoubtedly work efficiently.
What’s more, you’ll do well to adopt the latest protection technology for your financial records so that you can curb any unauthorized access. h You can’t overemphasize the need for a state if the art technology when it comes to protecting your business from hackers.
3. Proper staff training is vital.
If you’re not comfortable throwing any of your financial records in the hands of a third-party outsourcing team, investing in training and developing your in-house accounting department is a great way to stay efficient.
That said, training isn’t just about delivering knowledge on financial regulations and compliance; it also involves using the latest technology, collaboration in workplaces, etc. It’s also important to note that training in-house shouldn’t be a one-time time thing. Instead, it should be a regular and continuous practice. This can be costly, but it’s worth it.
One mistake many new business owners make is thinking that training their staff will leave since they’ll technically become better versions of themselves. While you can’t ignore this possibility, it’s also good to keep in mind that a well-trained staff results in higher productivity. More so, it would help if you didn’t risk working with a finance team that’s lacking in knowledge.