How to Increase Efficiency in Your Accounting Department
The accounting department in any company needs to run like a well-oiled machine. Bad money management is often one of the most significant issues that small businesses (and large ones) face. The handling of company finance gets more complicated when you add in staff, more significant contracts, benefits, and taxes.
Even if you have a strong sense of what is going on in your accounting department, it is crucial to check over your financial processes and procedures frequently. Here are some ways you can make sure you are maximizing the potential of the accounting department.
Automation
Accountants spend a lot of time on the job, but there are many opportunities for making their workloads less tedious and more efficient. Look for software solutions like OnPay Solutions that offer invoicing and more to support your accounts payable.
Of course, now that software can perform tasks like decision-based form control routing, there's no need to let paper forms stand in your way.
Batching
One of the most time-consuming issues that an accounting department will come up with is the flow of reimbursements, invoices, and check requests. If you tackle each of these things as they come in, it can feel like you are on top of the process.
However, it is much faster to have several days in the month dedicated to processing the same type of paperwork and forms. Communicate the days of the month to all your clients so that you don't create any unnecessary confusion.
Process overview
Often it is possible to gain fresh insights into where you can improve a process by looking at it with a new set of eyes. You may not get any leads by asking someone in the accounts department who is familiar with the current process.
Ask strategic or organizational people from elsewhere in the company to take a look at the processes. They may be able to ask questions or highlight what could be changed.
When processes aren't maintained, they might turn into complex workflows with excellent concepts but poor implementation. Take a walk through the procedure from beginning to end once a year as if you were the client or another member of the department.
We all like to think our department is efficient and smooth, but often it can be the opposite. A regular review and update can keep your accounts working efficiently.
Deadlines
It is no secret that people work better to deadlines, so having some strict deadlines and cutoff policies in place will help the accounting department. Waiting for workers is one of the most time-consuming aspects of accounting, mainly because most accounting departments have specific procedures to complete.
Observe how well these policies work after their implementation, and think about what could and can be improved further.
You should ensure everything in your accounting department is processed through the software that is designed to help it run as efficiently as possible, as that is one of the most significant ways to ensure your department runs smoothly. Working outside the software may result in incorrect information entered or other errors.
Perhaps your business could do with an entire overhaul; read this for tips: 7 Ideas To Improve Your Business Operations.
