When the case was investigated by an audit firm, they called up all the financial documents in paper form including invoices issued and other source documents used in all there business transactions. You can imagine the stress and time consumed in combing through a twelve month annual report splitted into daily transactions.
At the end of the auditing processes, it was discovered that the transaction the Chief Finance Officer omitted was a prepaid income transaction.
Certainly, I know you don’t want to find yourself being laid off like this.
Now, here is how you can find yourself in the same position:
You have been employed to handle the book-keeping and accounting functions of a company after passing through rigors of the recruitment process, and now the top management are having high expectation on your job role to produce a more effective and accurate financial report to aid their decision making process.
How you can attract and increase managements’ confidence on your accounting roles and functions.
Before I delve into this simple tip, it is very important that you understand the current trends that are driving business processes. We are now in a society where business processes and accounting information systems are driven by IT- the new language in IT driven business system is Cloud computing, where different computers perform various information processing on a shared network.
Having said that, information reliability is no doubt driven by sources and data processing system. For you to produce an accounting report that the management can depend on to make a precise and accurate decision, you need to ensure that your accounting information processing system is reliable-from preparation of source documents, posting to ledger to generating final account-income statement, balance sheet and cash flow statement.
This stems from the fact that auditors are more concerned about financial statement accuracy which if compromised could raise unfavourable comments about your job functions.
As an accountant, it’s advisable that you maintain a good system of recording company’s daily transactions. A system that keeps track of document issued and received from various parties on a real-time basis, stores them and calls them up when needed.
If your accounting processing system is reliable, financial statement will definitely show a true and fair picture of company’s positions which when audited, will not breed a biased comment from the independent auditors and invariably impact on management confidence on your job role and functions.
Striking a balance between accuracy and timing (especially at a time when you need to present an urgent financial report to management regarding the next best corporate strategic decision) has been the key problem of using a manual accounting system. The only way you can strike the balance between accuracy and timing, is through a simple, easy to use automated accounting system – which records all your business transactions into their appropriate ledger and produce an immediate report.
Hence, the need for a software like QuickBooks cannot be underestimated in meeting these business needs such as a precise and quality (in terms of content) financial report, accuracy and real-time report, just to mention a few. QuickBooks is rated number one accounting software in small business accounting.
With QuickBooks accounting software, you can organise your business finance, track your income and expenses in one place and generate a real time report as at when needed.
There are different QuickBooks Accounting software package you can choose for your business accounting, depending on your capacity and your business growth rate.
For more information on QuickBooks Accounting Software that will suit your business and training needs, Call 08084219399