In any company, the finance and accounting department will always have a major influence on the business finances. Any mistakes made by the department could lead to various problems which result in losses to the company. As a business owner, you have to make sure that your accounting department is stable and aligned with the organizational goals. The least you can do is to make it more efficient. We’ve put together six proven ways that help you improve your finance and accounting department efficiency.
1. Upskill your finance team.
Ensuring the people in charge of your accounts are proficient is very crucial. They have to be able to keep up with both internal procedures and any accounting software that has been implemented by your company. Therefore, conducting training to optimize your finance team performance is highly recommended.
There are various types of training you can provide, such as in-house seminars, external conferences or one-on-one training. Cross-training will be very helpful to enable another employee to temporarily handle the financial tasks while your accountant is on leave.
2. Ensure compliance with policies and procedures.
Indiscipline in the financial department is one of the biggest money wasters for companies. Thus, it is very important for your company to create policies and procedures to ensure financial operations are conducted in accordance with your company’s regulations and standards. Ask your finance staff to process all the payments, including salaries and contracts in a timely manner.
Pay attention to your accounts receivable. Ask your staff to send reminders to your customers or clients before their invoices become past due. It will be easier for your staff to manage your business cash flow and ensure the accuracy of the financial reports at all times.
3. Integrate your accounting department with other departments.
Your finance and accounting department doesn’t work in isolation and they often rely on other departments for their financial data. Requesting data from each department manually is a tedious task. To improve efficiency, we recommend that you allow all departments in your company to use a shared system. A Cloud-based ERP software can help your company integrate all the departments, thus allowing your finance department to get complete data from each department in a matter of seconds.
4. Take advantage of batch processing.
Processing every single invoice or receipt that comes one at a time is very inefficient. To save time and effort, make sure your finance staff combine all the invoices and process them simultaneously. Therefore, it’s best to ask all your staff to submit their invoices or claims for reimbursement at a designed time so that the finance staff can process it all at the same time.
5. Reduce manual processes.
Manual processes are consuming a lot of time and energy. In order for your finance department to be able to work more efficiently, provide an accounting system that serves to automate all the complex tasks. The system allows your finance staff to generate reports, calculate profits and losses, create invoices, record and save transaction details, manage taxes and many more in just a few clicks. By automating a lot of manual work, your finance staff can focus more on other important jobs.
6. Improve team communication
Communicating your expectations of your accounting department upfront will give your finance team clarity on what they should do. Explain the established policies and procedures so that they will always comply with them. Listen to their advice and opinions, as they may have some good ideas for eliminating unnecessary work, getting activities completed faster and finding new ways of collaborating with other teams.