The Finance and accounting department of every organization is tasked with handling the company’s finances. The department is in charge of incoming and outgoing cash flow, as well as financial statements. There will be consequences if your accountants are slow at work, and your company may suffer losses as a result. Here are a few key components and processes which will enable your Finance and Accounting team to operate efficiently.
Evaluation and Assessment
This can be defined as one of the most complex and intricate stages of them all. The aim of your evaluation is to create an in-depth, conscientious understanding of what you do well and where the team is deficient. This will help construct the foundation of the improvement process for your Finance and Accounting team. First and foremost you will have to identify the areas which need improvement. As a rule, highly transactional processes or those requiring several people to complete tasks such as reporting are the most noticeable areas in need of change. However, if you’re rigorous with your analysis, you’re likely to find more subtle process flaws as well.
This is a more comprehensive stage of the whole improvement process. When performing an appraisal, combine the thorough focus of an auditor with the enterprise-wide, global viewpoint of in-house leadership. The end result is technically sound and compliant. However, it also takes into account the larger picture, connecting your accounting processes to the overall business processes. If you hire an in-house team or a third-party to lead your change program, make sure they take into account the unique needs of your finance and accounting functions. This will help them direct your plan and update your processes.
Take your strategic planning into action, map out your procedures, and figure out how to implement and, therefore, operationalize them. Remember that it takes team effort to lift a good process. Make sure to include all relevant stakeholders in these implementation sessions.
Starting with a simple declaration that the overhaul is complete and you’re ready to roll, executing the remodelled processes is primarily about educating the people on them. Following that, you’ll want to communicate to your team which models they can use. You should give documentation to everyone. Guide your team through the newly remodelled procedures, and make sure they’re ready, willing, and able to accept them as the new standard. It’s important for your higher and mid-level Finance and Accounting managers to politely remind everyone about the new processes.
Enhancement and Optimization
This final stage is extremely significant where you can really enjoy the results of all the efforts that you have put into the improvement process. Method enhancement and the whole process of improvement isn’t something you do once and then forget about. Things alter, after all. Personnel, technology, the marketplace, the customer base, and your objectives are all subject to change.
Continuously tracking and improving your processes will not only save you from having to go through the whole improvement process again but will also ensure that they keep running smoothly. If your intention was to speed up a particular procedure, merely keeping track of time would tell you if your overhaul is still working. If you see a negative pattern, you should review the process and make some necessary adjustments as you go. Another area where a third-party can assist is in this area, especially if it was involved in the improvement process from the start.
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