Managing and keeping track of accounting tasks is a tedious process, with some businesses finding it impossible to keep records accurate, secure, and up-to-date.
That shouldn’t be the case, as there are simple steps you could take to improve your accounting processes. Keep reading to learn these three simple strategies for improving the accounting practices in your business.
Streamline your accounting practices
One of the best ways to improve efficiency is to streamline your accounting practices, as that will minimize operational overhead and improve sales. Start by identifying all the weak points in your accounting processes, which entails analyzing financial reports, records, and systems.
A thorough investigation will reveal inefficiencies, so brainstorm strategies to improve operations. That is also the perfect time to identify your team members’ core competencies and allocate tasks suited to their strengths.
Finally, keep accurate, updated financial records to help with precise data-driven decision-making. If keeping the books of accounts up-to-date is a hassle, you could always outsource the accounting function to a competent firm, such as Litrivis CPA firm.
Set up fraud prevention and cybersecurity measures
Fraud is a bigger and more common menace than you think, with small businesses enduring the most of this vice as they lack the resources to detect fraud or install fraud control measures.
“Occupational fraud is likely the costliest and most common form of financial crime in the world. This is bigger than healthcare fraud, tax evasion, money laundering, and identity theft”. The survey estimates that the typical organization loses 5% of revenue to fraud each year.
John Warren, Vice President, Certified Fraud Examiners.
You have to institute stricter internal controls, like multiple reporting mechanisms and segregation of duties, to minimize fraud opportunities. Team members should receive training on the fraud response process and how to identify risk.
More businesses are moving toward cloud-based accounting as it enables remote accessibility and collaboration. However, this is prone to hacking, with Accounting Today reporting a 300% increase in cyber-attacks targeting the accounting industry.
Work on implementing strong cybersecurity measures to protect financial data from phishing, hacking, or ransomware attacks. Conduct regular security audits to ensure the security measures are sufficient and up to date and educate staff on cybersecurity best practices.
Embrace technology
Some accounting tasks, such as invoicing, payroll, and bookkeeping, are repetitive and labor-intensive. Thankfully, advancements in technology mean you can use software tools to automate these processes and free up valuable human resources for more meaningful tasks.
Integrating automation in your accounting process reduces errors, improves accuracy, saves time, streamlines workflow, and enhances productivity.
Improving accounting practices in your firm: A 2023 guide
While keeping track, recording, and maintaining accurate financial records is difficult, it’s not unattainable.
By embracing technology automation, setting up fraud prevention and cybersecurity measures, and streamlining your accounting processes, you will ensure your records are always accurate and up-to-date.
If handling the accounting function is still beyond your resources, contact us at Litrivis CPA PLLC for help with accounting tasks, audit readiness, or tax readiness.
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