Accounting: The Backbone of the Successful Business

The accounting department is very often responsible for some of the most important work in the company, but it is rarely appreciated as the operational necessity that it is.  Accountants are so much more than simply number crunchers or drones who balance the business checkbook.  They are integral in maintaining fiscal efficiency and solvent business practices.  Depending on the size of the company, a few specialists may manage all accounting actions, or particular tasks may be funneled into specialized areas of the accounting department.

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Typical Accounting Tasks

While the specific tasks and responsibilities assigned to the accounting department are unique to each business, there are some tasks that are very common:

  • Recording Transactions – Every company, no matter how large or small it is, must keep accurate records of all transactions.  Documentation of all revenues and expenses is crucial in maintaining accurate financial records, as well as making sound fiscal decisions.
  • Interpreting and Summarizing Data – It would be unrealistic to expect that anyone could walk into the marketing department office and understand exactly what all the information and figures mean.  Likewise, it is unreasonable to expect that employees outside the accounting department could find meaning in the myriad records.  It is up to the accountants to not only record fiscal data accurately, but to also interpret and summarize the significance of the records so they can be useful in guiding business decisions.
  • Reporting, Projecting, and Analyzing – Once financial data has been summarized, the accounting department prepares detailed reports using the information to inform business practices.  Accounting reports are used to determine an appropriate operating budget, to identify areas where greater efficiency is necessary, and the expenditures most likely to return the greatest investments.

Modernizing the Accounting Process

With all of the documentation necessary in a fully functional accounting department, there are plenty of opportunities for error.  Lost invoices, duplicate entries, data entry mistakes:  one minor human error could lead to catastrophic financial consequences for the company.  Many businesses are interested in preventing errors and streamlining the accounting process; both are possible with online accounting.  Online accounting offers many benefits to companies looking to maximize efficiency and minimize costs:

  • Less Paperwork, More Space – Online accounting takes up less space.  Paper records to be scanned and stored, securely and electronically – instead of in a crowded, dusty file room.
  • Easier Access to Stored Records – By simply entering your search query, you can have electronic records delivered instantly to your fingertips.
  • Improved Access – Sometimes, issues arise when no one is at the office.  Online accounting allows approved users to access information from a secure location, even if it’s not the office.
  • Lower Costs – Online accounting offers cost savings in a number of ways.  It reduces personnel expenses, because it takes fewer people and less time to accomplish the same tasks.  You will also save significantly on many operating expenses.

Contact myVAO for the best in scalable, flexible, customizable online accounting services.

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