Improving your systems

How profitable were you last month? What use are your management accounts? Why do you have to wait six months after your year end to get your statutory accounts and what use are they anyway?
 

If you have good systems that are operated correctly, all would become clear. With the latest cloud based technology, there really is no excuse. Information can go in as it happens and you can have access to your financial performance in real time on your smartphone.
 

Even if you haven’t made the jump to the Cloud, improving and standardising procedures can dramatically improve accuracy and timeliness.
 

So, let’s start at the beginning. What information are you using to run your business? Has your accountant ever asked you that questions? Probably not, particularly if they think it’s acceptable to send you your year-end accounts six months after your year-end.
 

Once we’ve agreed what your need to make better decisions, we can establish how best to change or improve your systems so that the information you need is accurate and available when you need it.
 

A common flaw is that the accounting system isn’t structured in the right way to record and present this information.
 

How information is segmented is also critical. Properly allocating costs to jobs will allow you to measure job profitability and really understand what is working within your business.
 

System changes don’t have to be dramatic. Often small improvements in structure or process can make a big impact. However, if you do need to adopt a new system, it’s vital that you establish clear system requirements and carry out thorough due diligence before choosing which system is right for you.