The problem begins with the start of the business. It is very common for a business to be started without any plans for recording day to day transaction history. It is often an afterthought that only comes into focus when financial information is needed to apply for a loan, prepare tax returns or to seek investors or partners. Owners use their personal bank accounts and “shoe boxes” hoping they have what the tax preparer will need. Those owners that recognize they need a separate accounting system often engage a book keeper to help them get started and “keep the books”. Since very few business owners know or understand accounting to do it right, they rely on the book keeper or accountant. Accordingly, the book keeper or accountant will generally set up a system that is just enough to get by, that is provide basic accounting reports and serve as source for tax returns. These owners have no idea of what they are missing!
If done right, financial accounting can and should be a strategic asset to the organization. A well designed and implemented system can provide a wealth of information on all aspects of business operations. Examples include:
- Sales/Income Trends
- Operational Efficiency
- Debt Management
- Bankruptcy Risks
Owners can use this information to:
- determine how well their business model or strategy is working,
- identify which products or services generate the most revenue and profit
- identify which customers are most valuable to retain
- monitor employee productivity
- manage cash
- monitor the organization’s credit worthiness
- and a whole lot more
The Financial Accounting System Shape-up is designed to transform your system into an information powerhouse providing the information you need to successfully drive your organization forward. We start with gathering information about your organization. This includes history, your vision, issues and challenges your face, your current accounting system and practices and what information you would like to have.
Based on this information, we assess the current system design and processes and provide recommendations for improvements. These may include replacing or implementing accounting software, changes to the chart of accounts, changes to accounting policies, procedures and practices, and reporting.
We will work with you to understand the recommendations and how they can help you and your organization and determine which you desire to implement. We then develop a detailed implementation plan and the necessary documentation supporting ongoing operations and training. You have your option of implementing yourself or we can assist you with that as well.
Contact Us today to get started!