An accounting department’s efficiency can greatly dictate the financial health of an entire organization. When your accounting team is well-run, you can devote time to helping your leadership make strategic business decisions. Learn how to improve your accounting departments’ efficiency and accuracy while adapting to changing dynamics.
1. Integrate Automation and Technology
Today, automation doesn’t mean robots are doing the work. Automation in accounting is designed and orchestrated by humans, executing tasks that can be standardized. Software solutions can automate routine tasks like invoicing, payroll, reporting, and other recurring tasks.
Just like the computer has transformed how an accounting team works, so can automation and technology. Review your current software systems to determine if they still meet your needs. Some software providers haven’t adapted to changing industry demands, and you may be running an antiquated system without realizing it.
Collaborate with your procurement team to determine if exploring other options would improve your efficiency and at what cost. Even if an initial price difference may require an adjusted budget, consider it an investment in your efficiency. Outdated systems can slow down workflows, require human intervention and review, and ultimately lead to errors.
2. Establish Standard Operating Procedures
The way one team member does something may not be the same way another would complete a task. While differing approaches may yield the same result, a lack of standardization in your accounting process can prove problematic quickly. Consistency is essential for efficiency, scores, timelines, and, ultimately, results.
Establish standard processes for tasks like month-end closing, expenses, and reconciliations. In doing so you’ll reduce the risk of errors and allow team members to cross-train and delegate duties. Document your workflows in your Intranet or policies and procedures hub.
Require team members to read and acknowledge processes annually to establish the expectation that all colleagues are expected to comply. These processes also improve new employee orientation, ensuring new colleagues understand how work gets done at your organization. When a colleague departs the organization, retained team members have a resource for their tasks until a replacement is hired. Analyze and update processes annually to ensure they continue to align with your business.
3. Get Outside the Cubicle and Build Relationships
There’s no debate that accounting teams need large batches of time for focused individual work. However, an efficient accounting department doesn’t work alone. A healthy and efficient accounting team has a clear understanding of the business and its needs.
Establish an expectation that your team integrates within the organization to understand projects, pain points, and opportunities. Build rapport with key team members and individual contributors to build trust and open communication. Don’t rely on top-down communication as critical details are often lacking and information can be less timely.
Set up a regular check-in meeting with key departments to review budget progress, forecasting, potential adjustments, and long-term goals. You may find that the marketing teams’ invoices from a vendor are delayed, which has caused lags in projections. Other times, you can identify cost savings that can be reallocated to a project or special purchase. Don’t wait until the close of the fiscal year to identify opportunities to collaborate and support the organization.
4. Proactively Report Financial Data and Performance
If you wait to provide financial data until it’s requested, you’re already too late. Work ahead and build a dashboard that you can report out proactively. Provide it to your executive before key meetings and post it on your Intranet to increase transparency across the enterprise.
Include details on key deliverables that align with your strategic plan or required reporting. Equip your team with key insights and trends that can help boost their confidence from the elevator to the boardroom. This practice will also boost your team’s regular efficiency by working ahead and being the first to report versus respond.
If something is trending outside of expectations, you can control the narrative instead of being on the defense of issues. Collaborate with other departments to understand their financial data and future needs to improve insights and opportunities.
5. Cultivate a Culture of Continuous Improvement
Technology moves fast, and if your team isn’t ready to grow along with it, you should expect problems. Invest in regular training on software and best practices to establish a culture of growth. Allow time during the workday for learning and development to encourage team members to follow through with learning plans.
Collaborate with your human resources team to align business needs with training opportunities. If certain training comes at a cost, include that in your department budget to reduce the burden on the individual.
When team members gain new skills, ensure that it is documented in their development and growth plan. This can help ensure that their career grows along with their skill set. When they’re trained and ingrained in new technology and best practices, they can adapt more easily and operate more efficiently.
Balance More Than Just the Books
Invest time in increasing your teams’ efficiency and you’ll get more than timely and accurate results. Efficient teams can lead to better workplace satisfaction, associate retention, and a healthy organizational culture.
Respect for the process means respect for the individuals who help your organization thrive. By prioritizing efficiency, your accounting team can focus on offering key insights and identifying opportunities for growth and smart investments.
