It goes without saying that your accounting department plays a vital role in running your company smoothly – it can make a significant impact on the speed and quality of your business decisions. But what happens when your accountants fail to be effective and efficient, costing you the success of your organization? In this post, let us focus on 5 reasons why your remote accounting department may need to be re-evaluated.
- They Are Not Timely With Reconciliation
Reconciling your company’s accounts receivables and payables to your financial statements and balance sheet should be done at the end of every month, or week, or even at the end of each day if your business has a large number of transactions.
If your remote accounting department is frequently behind in reconciliation, these errors may go undetected and prove to be disastrous. For example, if a bank teller calculates a deposit incorrectly your company may end up short of the funds it needs to continue operating.
And if your accountants argue that they would rather reconcile at the end of the fiscal year all at once, it’s just a bad accounting practice.
- They Don’t Enforce Cutoff Policies
Having a system of rules and cutoffs for submitting reimbursements, invoices, etc. and enforcing them strictly is extremely important. If your current remote accounting department is not adhering to and enforcing these cutoffs, you cannot expect your accounting processes to be business efficient.
- They Are Not Proactive
One of the major mistakes we see many remote accounting departments make is, they don’t know how/when to seize an opportunity.
Since their work is largely recurring, cyclical, and predictable, most accountants work on an existing path and miss several opportunities for cost reduction and improvement in the department. If your accountants think that “it’s always been done this way and the business is doing just fine”, that’s a problem.
- They Don’t Have a Standardized System For Data Reporting And Management
Regardless of how big (or small) your business is, your accounting department probably needs to generate reports for not only record keeping and their own department, but for executives, individual departments, and for use with tax filing and preparation.
That’s why your remote accounting department must have a uniform system for reporting and data management to ensure that work is not being duplicated due to software complication or formatting requests.
- They Are Not Firm Enough With Your Clients
This is the bane of account receivables no matter what industry you’re in. While a high number in your receivables column looks really nice, you cannot invest in the latest technologies or buy more materials with a promise.
Your accounting department should not be letting your clients get away with not paying their balances! Refusing future service before paying off balances on previous orders may seem rude but it’s a common business practice among successful organizations.
Improve Your Business With a Highly Rated Remote Accounting Department
There is more to accounting than preparing financial statements. A remote accounting department dedicated to your success can help you run your business smoother. At Remote Accounting Online, we help organizations generate business insights and shape strategic initiatives, like choosing a marketing strategy that leads to the best financial outcome. Call us today at 541-772-5555 or write to us online to schedule a free consultation for accounting process improvement.