One of the most common ways that companies will get bogged down under their own weight is through poor accounting and financial mismanagement.
In a survey conducted by Business-Software.com in April and May of 2013, nearly 200 finance executives in the U.S. were asked a series of questions to better understand the current state of finance departments around the country.
Some of the insight from the study included:
- 70%+ don't integrate their accounting system with the CRM
- 40% have a period close that takes two weeks or more
- 64% are using more than 25 spreadsheets and/or Excel documents across the department
- 18% are using 100+ spreadsheets and/or Excel documents across the department
- 51% are still painfully dealing with manual data entry
- 27% are using an accounting system that's more than 11 years old
These are all key factors that indicate the need for serious overhaul and process improvement in accounting.
When manual entry was the standard, the cost per invoice in processing was much higher from the standpoint of labor. This is still true - the longer employees spend on processing and paying invoices, the more costly it becomes. The problem lies, however, in the fact that there are far more expenses in the accounting field than there ever have been - software for compliance, data entry and storage, automation and routing. The cost of software implementation alone can be well more than the annual expenditure on salary and human power required by the accounting department.
That is - unless the implementation is done right, and the software is an advanced and agile modern accounting automation option.
The idea of running any part of an organization entirely on Excel spreadsheets and tables is a strategy that is over a decade past its prime. The modern accounting office shouldn't involve anything that could be considered "mundane" or "busy-work".
Upgrade your accounting system to a stronger platform - accounts payable automation is one of the most flexible ways to improve a business, and you can get started with strategies today.