Implementing Business Process Improvements For Finance Departmentsby Lima Dutta Accounting services
Current economic times demand that organizations and small businesses achieve more with less. The concept of business process improvement (BPI) has evolved into an operational strategy which will not afford to be overlooked as “optional”. so as to stay competitive, a company’s internal functions must be reengineered and reassessed to become more efficient. Business owners must evaluate and look for efficiency in their processes, systems and organizational structure. This sort of evaluation must occur at the departmental level, also because the overall business level. Within Finance departments, BPI should be assessed in five key areas.
Optimizing income – Predictability of money flow is critical for small to mid-sized business. Regulating accounts payables and receivables directly impacts income. Anything that's paper driven or a manual process should be evaluated for business process improvement. This avoids inconsistency of processing and allows functions to be performed at an equivalent time monthly or via an identical practice.
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Improvement in Reporting –
Accounting systems should provide reports that reveal key operating information
which is pertinent to a selected business or industry. Systems must evolve from
just reporting to adding value. They need to provide information that enhances
accuracy and understanding of data, also as allow business owners to derive key
pieces of operating intelligence about Online Accounting
Services. Systems which will offer
customized reports which generate key pieces of integral data should be
considered so as to scale back “data crunching” thereby replacing it with
usable data for analysis.
Budgeting and Forecasting – Access to reliable and timely data is critical to budgeting and forecasting, and accurate budgeting and forecasting is critical to the success of small to mid-sized business. This process must be streamlined and performed on a daily basis. Like optimizing income, this process should be evaluated for automating tasks, like manual data entry, wherever possible.
Developing and Adhering to Cost Controls – Fluctuations and even small variations in costs can produce vast implications on budgets and income for small to midsized companies. Creating cost controls may be a process improvement from which each business can benefit. These controls ensure an alignment between costs and budget and work diligently to mitigate the occurrence of utmost corrective Online Bookkeeping Services in Dallas.
Organizational Structure – Personnel functions should be evaluated to make sure that expertise is appropriately leveraged which manpower is deployed as required . this might require business owners to reconsider their organizational structure in terms of cross functional teams as against a hierarchical data structure , or the other way around .
As small business owner or entrepreneur, evaluating these five areas of BPI within a finance department allows your business to function more productively. We are currently offering a free analysis of your business processes and accounting.
Created on Feb 19th 2021 05:11. Viewed 150 times.