Whether it’s the apps on your phone or your work out sneakers, everything benefits from an update now and then. A new season is an excellent time to think about making a fresh start on what could use an update – especially in your business.
While it’s not a tech solution (though those can be part of it), one area of your business that may need updating is your financial processes. The tools you use to conduct your finances, as well as the very processes you have in place, need regular evaluation to ensure you’re using the best practices available.
When you think of updating your financial processes, you may be seeing dollar signs – and not the good kind. Hiring an accountant or even updating to the latest version of your software may seem fiscally unnecessary. Or, you may not even realize that better options are available.
The processes you put in place determine the success of your business operations. Below are three examples of how poor financial processes harm your business, and what you can do to fix them.
Keep payroll running smoothly
Paying your staff incorrectly or paying them late causes financial, legal and interpersonal headaches. Not only will you upset your employees, you’ll have a complicated financial mess that could lead to costly legal penalties. Payroll is a complicated task, and it deserves an efficient process to guarantee employees are paid on time and in the correct amount.
You can avoid costly mistakes with the right payroll software that ensures time and pay data become an automated process. Additionally, you could hire a bookkeeper whose sole responsibility is ensuring payroll is handled correctly.
Encourage communication across departments
Are your current processes discouraging departments from working together? The culture in your office may encourage finance to only deal with finance, and HR to keep to themselves. All departments need to work together to ensure the business’ continued financial success. Processes need to establish clear roles, but also open paths for communication about the current state of the business.
Make sure everyone is using compatible solutions in their day-to-day work, whether in how information is communicated or which software tools the team uses. Investigate which tools and processes best allow your team to work together towards your shared goals.
Maintain sight of the big picture
Proper invoicing and payment processes help you accurately measure how much money is flowing in and out of your business. Without an accurate measure, you may over or underestimate how much cash you have on hand, leading to ill-informed business decisions – and possibly the end of your company.
One way to generate better financial insights is to invest in accounting software that manages and automates tasks like invoicing for you. Most financial software can create cash flow reports and generate basic projections to help you make data-driven decisions. If you want a higher touch, a financial advisor is a worthwhile addition to your team and can better generate these useful insights. MCG Solutions is here to help you improve your business’ financial processes. Contact us today to get started.