The Method to the Madness
A solid accounting procedure where data entry is delegated across your organisation, allows the natural operations of your business to generate the financial data itself, instead of relying solely on the finance function.
How is Data Entry delegated?
- Sales staff generate invoices, sale orders & quotes
- Credit card holders justify their expenditure
- Casual staff input their timesheets
- HR processes payroll
- Procurement approve purchases
- POS systems sync automatically
How does this work?
The best solution in market today is cloud accounting providers such as Xero and Saasu. They both operate as Software As A Service (SAAS), allow an unlimited number of users, are able to restrict access levels for different functions, and are always up-to-date.
The Financial Controllers has been a strong advocate for cloud accounting software since they first came to market, however we remain completely tech-agnostic - we prefer to recommend software and add-ons based on the requirements of your business.
What does this look like?
Hypothetically; let's use a Production House as an example:
- The Production House has an outbound sales force which quotes on jobs. In this case, we would be looking at Saasu as our core cloud accounting software.
- The sales team also need a CRM to maintain their customer contact - we might recommend Zoho since quotes and invoices sync with Saasu.
- The production team has grown to a team of 50, and handling all payslip enquiries and leave management has become too cumbersome - so we would use Keypay as our payroll add-on.
- The production team consist of contractors and casual staff that need to track their time on specific projects, and also to fill out timesheets to get paid - in this case, we might use Quick Timesheets to make this task easier for the staff and managers.
Contrary to how most small businesses operate, an accounting procedure designed around a similar software map:
- eliminates double or triple-entry - e.g. paper timesheets and leave forms are no longer re-entered into payroll software
- reduces fraud risk and errors by segregating duties - e.g. procurement approves purchases as goods are received; finance approves for payment
- minimises back-and-forth communication - e.g. sales staff generate invoices as soon as the sale is closed, without needing to confirm invoice details & special billing instructions with finance.
- reduces bookkeeping and accounting costs - due to less processing requirements