Business owners are faced with many challenges to satisfy long range of diversified business needs, especially Smaller and Medium Scale organizations, – sales, marketing, networking, administration, finance, among other things. Research has shown how overwhelming it could be to manage these units without jeopardizing business processes.
Oftentimes, finance functions which also involves proper accounting/bookkeeping processes; are not giving as much attention as needed since focus is more on handling other units presumably more critical in a business. More often than usual, finance functions are often neglected or not handled properly especially among startups, mostly as a result of ineffective policies and procedures to align a new business finance objectives, which is common with startups.
Best practice operating practices need to be put in place to check these lapses, otherwise, the whole system put together could be harmed. It does not look uncomplicated as most startups think, the reason why trained professionals are required to handle these functions.
Bookkeeping/Accounting process delegated to a single person can be quite enormous considering the risks and responsibilities associated with it. Assigning different employees the responsibilities in a typical finance functions such as; authorizing transactions, recording financial transactions, reconciling accounts, audits, monitoring and reviews, adequate maintenance of related asset custody and so on; provides more effective policies, procedures and internal controls.
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However, no matter the nature of your business, key finance processes such as Sales and Accounts Receivables, Cash management, including bank lodgments, Purchases and Accounts Payables, Payroll and Human Resources, Internal audits and Compliance, Account/Bank Reconciliations, should be accorded adequate attention in a consistent and transparent manner , considering those processes special roles to be assigned to specific employees of an organization.
Financial health of any company can unavoidably be determined by maintaining proper and complete business records of financial transactions and documentation of key policies, procedures and controls which can help to clearly define business operations consistent with organizational goals and objectives. Failure to stick to this simple rule can really hurt your business so bad. Unfortunately, finance functions are completely unavoidable in, and negligence always comes back to bite the business.
Do You Need Accounting Help?
Consistent up to date and cleaning of accounting records for sound business decision making, may be posing some difficulties when you are preoccupied with other business functions. Is it time to consider independent professionals because of certain technical complications that could occur along the line? It could also be daunting, time-consuming procedures. Not recording correctly and poor monitoring can cause complications and confusion.
At Fritznoble , we assist our clients on the best available options that suit their businesses...Reach out/ Outsource With Us… If Accounting works are bothering you, then it’s time you outsourced your accounting and bookkeeping requirements, this will help you concentrate more on core competencies of your business; with a team of professionals to help.
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