How to improve the accounting processes of a company?

The internal processes of bookkeeping providers are very dynamic since they need to be up to date with the needs of each client and the constant changes in legislation. For this reason, companies require accounting services to advise on what would be the ideal methods to carry out good management in organizations.

What is accounting process management?

To understand what accounting process management is, we must take a step back and understand the concept of business process management (BPM – Business Process Management).

This management, also called Business Process Management, is the union between the management of a business with information technologies to optimize the results of the organization by improving internal and routine processes.

Process management is carried out in stages. They are:

• Analysis
• Redesign
• Modeling
• Implementation
• Monitoring
• Management
• Automation

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How to improve the accounting processes in a company?

A fundamental measure to perform a good process management in accounting is to organize the accounting routines. We have listed the best practices for this below.

• Map internal processes

The mapping of internal processes, which are routine, is essential to identify inputs, outputs and actions that are taken during the workflow. It is the best way for the manager to visualize the essential activities for the accounting firm, those that add more value, the tasks that generate non-conformities and delays in deliveries.

To do a good mapping, you must design how each process behaves in your office and classify it according to its complexity. Some managers separate their internal processes in colors or under different names. The important thing is to have a minimum qualification, such as:

• Processes that follow more winding paths, are more susceptible to errors and require more time from professionals.
• Processes that can take different paths to achieve the same result.
• More complex processes, which demand a lot of attention and time from the professional.
• Processes that follow simple paths and run smoothly.

The mapping may not be sufficient because it only contains all the procedures. A flow chart should complement the mapping, as it deals with the operations performed in the process.

The flow chart is a graphical representation of the process, a visual demonstration of the step by step that will be followed. It consists of geometric figures, lines and texts organized to express an order of events. Its objective is to demonstrate tasks and identify those responsible for each one.

• Organize tasks and workflow

Once processes are mapped, the manager has more visibility into tasks and workflow. The time has come to organize them and promote efficiency and productivity. Initially, it performs a logical sequence of the workflow to avoid downtime and provide efficiency.

Then, it is necessary to determine the responsibilities of each professional, according to their best abilities, and establish a schedule of deadlines. Remember to set aside extra time to cover delays and obstacles. And do not forget to also create a priority to-do list so that urgent and important ones are organized at the top.

It is worth highlighting here the relevance of a clear division of tasks. This is an important indication of the organization of accounting routines and process management. The division is intrinsic to the structure of medium and large accounting offices. However, the little ones are not so used, so accounting services would be the ideal tool for the latter to be able to adapt more quickly.

The division of tasks is related to departmentalization, which is essential for each professional to be responsible for an area. If the areas of accounting, finance, taxes, HR, and archives are in your office, each of them will have a person in charge who will divide the tasks related to their field of activity. Therefore, it is easier to measure productivity and monitor performance indicators.

• Invest in internal communication

It is impossible to organize the routine of your accounting office without good internal communication. Professionals must be educated and used to collaborating with each other to achieve results. But if the manager does not provide them with practical and efficient forms of communication, there is no point in changing the organizational culture.

Some offices use corporate email in addition to instant messaging and real-time meeting applications. Other tools can be adopted, including a management platform that allows this interaction in real time.

We mentioned earlier that one of the errors in the management of accounting processes is the lack of integration. We also cite technology as an ally. The point is that storing this financial information in lists and spreadsheets is a problem because these documents must be shared with the professionals who need them every time they change.

As they are used in different processes and help in the execution of tasks, the ideal is to have a good management system that allows (and encourages) the exchange of information between staff.

The software receives the information and allows access to it from anywhere and by all employees. In addition to improving the integration of information and organizing it, it also contributes to the standardization of processes.

As we have seen, accounting services play a preponderant role for all organizations, mainly because many companies do not have much knowledge about how accounting should be kept, and this action has a direct impact on productive performance.