Four Business Functions To Automate

Four Business Functions to Automate
Most small to mid-sized businesses operate under restricted budgets and must optimize existing resources to remain within budget, while ensuring that client services and client expectations are met. 

Automation can assist small businesses in optimizing existing resources. Identifying key areas to automate can produce significant increase in productivity. Below are four business functions worth considering for automation. 

Bookkeeping is the foundation for accounting. When a company automates bookkeeping functions, record keeping is completed in a timely and accurate manner. 

Accounting functions are the backbone of every business, including start-ups. Accounting requires maximum attention to details. A minor error that occurs when recording financial transactions can result in under or over reporting of profits, or worse--significant tax implications. For many small businesses, the owners are responsible for the accounting and also providing the services to clients. Business owners can perform a finite number of tasks and do them well. They can either work diligently to ensure client services are met, thereby neglecting the accounting tasks, or they can pull resources from client services to concentrate on the financials. Automating the accounting function can assist in ensuring both objectives are met. 

IT Processes: Small businesses depend on IT for speed and efficiency in servicing clients. Automating IT processes can assist in ensuring better record-keeping and adherence to deadlines through a system of automated triggers, email-reminders, etc. 

Training and Communication: In the case of small businesses where employees may work remotely or in various geographic locations, business owners can create frameworks which serve as information and training portals, thus reducing time and expenses involved in live training and knowledge transfers. 

Elements Of Sound Accounting Systems

Whatever the type, whether it is open-book, or the double-entry bookkeeping, accounting systems form the backbone for a successful and profitable business. This is true, regardless of the industry you operate in. If there is any difference, it is in the elements that may differ for accounting in different industries. For example, accounting systems of a hospital or medical care home will differ greatly from that of a publishing house or a home furnishing supplier. However, this does not reduce the importance of even a single element; for a business to run profitably, it must pay close attention to its bookkeeping and accounting.

In general, accounting systems need to contain the following elements to ensure that the business' bottom line stays on the path to growth.

Bookkeeping: Accounting is incomplete without a sound bookkeeping system in place. Bookkeeping keeps track of essentials like entering transaction details that help you keep track of your cash. For example, when accounts payable and receivable are updated regularly by the bookkeeper, it allows you to know at a glance the amount of cash owed to you, or the payouts you need to make.

Payroll: If you have employees, particularly those working on variable terms, you would need to assign a hired accounting professional to take care of the payroll. Automated accounting systems in particular, take into consideration elements like variable working hours, holidays taken, etc. to ensure accurate and timely payroll.

CFO and Controller level insights: CFO or Controller-level recruiting can prove to be expensive for small businesses and enterprises. But these are indispensable to the growth of a business. Apart from reviewing existing accounting and bookkeeping practices, CFO and Controller level insights can provide your business with crucial decision-making inputs. For a business with budget constraints, outsourcing this element of their accounting systems can help make a big difference to the growth and expansion curve.