If you want to scale your business, it can be challenging to stay on top of your finances. That’s why you need an efficient accounting department. Regardless of your industry, the accounting department has a mandate to manage business cash flows, financial statements, and bookkeeping.
An inefficient finance department can incur significant losses for your business. So, as a CEO, it’s vital to seek new ways of improving your finance operations so that your business can grow. On that note, continue reading to discover some simple ways to improve your accounting department.
1. Hire proficient staff.
Corporate growth strategies exist to help you increase your business’s market share. One viable corporate growth strategy is hiring the best employees who can handle the job efficiently, which will certainly give you a clear advantage over your competitors.
What’s more, as a business owner, you’d agree that recruitment processes are expensive. Hiring the wrong person means you have to repeat the process over and over again. Conversely, a good hire translates into increased productivity and profit for your company. You won’t have to organize another recruitment exercise to fill the position once you get the right fit. Remember, an accountant isn’t just a bookkeeper. A professional accountant accesses your company’s current financial state, provides strategic insight, and helps achieve your desired revenue growth.
With the above in mind, the best way to find the right fit for your company is by ensuring the individual is proficient and committed to your financial plans. You can enhance the proficiency of your accounting staff by organizing training sessions regularly. This timely training will expose them to the latest financial procedures and accounting software to optimize their performance. You can either opt for in-house seminars, one-on-one training, or external conferences.
2. Bring on a fractional CFO.
Every business looking to maximize profits needs to have a Chief Financial Officer (CFO) on its payroll. Your finance team needs someone who can maximize cash flow, eliminate waste in the system, and increase profits. CFOs are experts in strategic planning, tackling cash flow issues, defining profit margins, and navigating audits. If you can’t engage an experienced CFO’s services, why not opt for a fractional CFO?
A fractional CFO provides the same benefits as a full-time CFO. The only difference is that you engage fractional CFOs on either a contractual, part-time, or retainer arrangement. What’s more, bringing on a fractional CFO allows you to have an expert oversee your financials without standard overhead costs like salary, bonuses, and benefits.
Also, unlike full-time CFOs, many business owners hire most fractional CFOs on a project basis. Notwithstanding, an excellent fractional CFO has the skills and technical know-how required to tackle any financial challenges facing your company. Even better is the fact that fractional CFOs can also help optimize and implement your financial strategy. However, if you already have an in-house chief financial officer, a fractional CFO can serve as an advisor or lead for a particular project.
3. Automate your processes.
One way to improve your financial operations is to use a good accounting system. Your finance department can use technology or automated software to carry out specific tasks. Nowadays, manual accounting has given way to automation. As a business owner in this technological era, this is vital for better efficiency.
For example, automation allows your finance staff to focus their effort and time on other things. Moreover, manual work only serves to decrease efficiency and productivity in the system. What’s more, you can also use cloud computing. Besides being safe, cloud computing means your staff can access essential data from multiple locations. This means they can work remotely and still be productive.