Effectiveness of your Accounting Department - by Ravi Patel

 

Entrepreneurs need to periodically assess the effectiveness of their Accounting Department.

 

The most obvious criteria is whether Entrepreneurs consistently receive monthly statements on a timely basis and if they are accurate. However, past data is merely a reflection of what happened, but does it help you to make better decisions?

  

An effective Accounting Department is one that moves from just preparing financial statements to analyzing and meaningfully reporting on the data to help Entrepreneurs monitor trends and make optimal decisions.

  

In addition, Accounting should be closely involved in preparing budgets and financial projections and measuring and reporting on actual versus planned results.

  

Entrepreneurs, have your Accounting Department become your decision-making support team rather than just "bean counting."

 

 

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