Efficiency is a big word in the business world, and for great reason. When things are efficient, they aren’t difficult, they’re done faster, and they’re often done correctly. People who struggle and are stressed are more likely to get things wrong, and in the finance department this could lead to significant errors. Your finance department is the lungs of your company. They breathe in and bring in your income. They breathe out to pay your suppliers, business partners, and bills. Without healthy lungs, systems will be halted and your business will stutter into inefficiency as a result. It is no question why many strive to make their finance department more efficient.
It doesn’t matter if you experience a consistent backlog for only a few periods throughout the year where your accounting team just always seems to be behind.
There are smart solutions to invest in, and those solutions are:
1) Migrate to Cloud Accounting
Small and medium businesses make up the bulk of the UK economy. They are the mum and dad shops that have taken off; they’re the startups that are transforming the high street as we knew it into something extra special.
In a study of over 230 participants in the financial industry, it was determined that migrating accounting tasks to a Cloud Accounting system could shave three whole hours off your day. That’s 720 hours a year, or almost 33 days. That’s a lot of extra time! In that time, they can get more work done, or at the very least, get their current workload finished without so much stress.
With Cloud Accounting software like Xero, you can improve cashflow and even benefit from automating cashflow forecast so you can better budget throughout the year. This is done because your Cloud Accounting system can be updated instantaneously from anywhere, and with a variety of add-ons to choose from, you can even link your system with your sales team, ecommerce platform, and so on, so that income and costs are automatically documented and reported on.
Using Xero to automate cashflow is a great way to understand how much money your business truly has on hand. If you can keep better track of your overhead and future costs, you can weather out slow periods and forget the days of being in a deficit. With automation, you can even create a comprehensive cashflow forecast that will help you make the changes you need to your business so that you can stay in the black throughout the year.
Migrating successfully is going to be a barrier, but only if you attempt it on your own. Maple aims to take the stress out of migration onto Xero Cloud Accounting and to get you set up in record time instead so that you and your employees can start saving time.
2) Rely on Professional Accounting Compliance Services
The law is the law, we all know that, but sometimes the law can work on our side, too. Yes, compliance is mandatory, and having our services on hand will help you stay up to date with all the legal changes, but there is so much more potential we can help with.
Our services here at Maple work to benefit your business in every way. You can benefit from tax deductions through the HMRC’s Research and Development tax relief, for example, and free up funds to stimulate a health cash flow necessary to keep your business up and running.
The government can sometimes seem like it’s throwing a tantrum with how fast it changes the rules, and everyone else is supposed to play along (because really, what other choice do we have?). Thankfully there are always avenues you can use to reduce taxes, make use of grants, and generally better manage your business’ financials.
3) Free Up Management Time with Support Services
Outsourcing accounting services is a smart strategy, especially if your business undergoes only a few periods of high sales and business per year. Christmas, for example, will often provide a considerable boost to sales to any company, and the influx in sales can mean your accounting team falls behind.
Support services can help keep your accounting department afloat and your business on top of its finances. By outsourcing during these high volume periods, you can keep your books balanced, your accounting team sane, and help make all aspects of your finance department more efficient.
In turn, you will be able to pay your suppliers better, keep your product stocked, and your business running. You’ll enjoy more sales, more customers and better management, all without hiring another full-time employee that needs to be trained and kept on throughout the year.
4) Bring Your Accounting into One System
A cloud-based accounting system can improve the efficiency of your employees or department by hours, but that isn’t the only strategy you have available. Enterprise Resource Planning (ERP) is a system of programs that work together in harmony. Their ability to communicate with each other automatically is guaranteed to improve the overall efficiency of your entire business.
For example, your inventory team could keep an up to date stock of your resources, and when that stock reaches a specified number, the program will then request for more stock from your suppliers automatically. Your accounting department will then be notified and be able to pay the invoice faster and more effectively, keeping your business running fluidly, your suppliers happy and your finance department more efficient.
This works in the opposite way, too. You can send out invoices to your customers automatically, and get notified when a payment doesn’t come through.
For this to work, you need to ensure that your Cloud-based accounting solution works in conjunction with your current systems because once your entire business can automatically communicate with one another, your business will boom.
The Positive Effects
Efficiency is built in multiple layers, but thankfully it offers a positive feedback loop. A more efficient accounting system on the Cloud that can even work with other programs in your company will take a lot of the stress and frustration out of your accounting team’s day, in turn helping to make your finance department more efficient.
Between the time saved and the stress saved, your employees will be happier, healthier, and more productive. There’s nothing better than positive feedback that benefits your employees and your business, and revamping your accounting department’s systems is where to start.