Does your Accounting Operation need improvement? 6 questions to help you find out…

The pace of business continues to speed up in the age of the connected economy.  Businesses are constantly challenged to come up with more efficient and productive ways of operating to stay competitive and profitable.    One area that can help you make better decisions is accounting.  However, this can be one critical area that business owners are often reluctant to touch.  With today’s technology, it can offer the best ROI in terms of reducing transaction costs and helping you get better information to make better decisions  (Accenture, Deloitte also confirm this). Here is how to determine if your accounting has room for improvement: Is the total cost of your transactional accounting function less than 2.5% of revenues? Do you have a completed set of financials and variance analysis completed by the second work day every month? Do you have key accounts (banks, credit cards, vendor and customer accounts) reconciled by the fifth work day? Can you get real-time reports of how much you are spending by vendor and services compared to expectations/budgets? Do you have real-time cash reporting and a rolling 16 weeks forecast of cash and revenue? Do you have real-time reports on your inventory turns and sell through by product? If you have answered NO to even one of these questions then you need to look at improving your accounting practices. Logicon Solutions has helped business owners transform their finance and accounting teams into a cash flow generating, business building, decision support powerhouse.  Exciting? Yes! We can show you how improving your accounting will consistently help you make better decisions for your company. Schedule a free...

Best in Class Accounting for your Business…Yes you can.

Accounting Automation, Accounting Data, Expense Automation, Payables Automation, Task automation …With today’s economic climate and fierce competition, companies must ensure their accounting operations are competitive in terms of efficiency, effectiveness and productivity. A recent article by APQC highlights some interesting ratios on what it costs to run the best of class accounting operations in the world today.  Sounds expensive? It may come as a surprise to know that best of class accounting operations cost only 0.4% per $1000 per revenue. Another study by CIMA revealed that best in class accounting operations are between 0.6% and 0.7% of total Revenue. The biggest change in the last 5 years has been that the cost of technology to achieve those savings is as low as a few dollars per day as opposed to hundreds of dollars per day in the past.  With new available technology we are now integrating for our clients and we are seeing accounting costs tumble for some small and mid-sized companies by as much as 30% to 60% in some cases! Want to find out the true cost of taking advantage of new accounting technologies? Want to find out the true cost if you don’t? Schedule a free Strategy Session with Gerry Anderson, President of Logicon Solutions to review the options available to improve your accounting processes and Increase your Profitability! You provide a quick review of your challenges and we provide you with information on how you can overcome these challenges based on proven systems that work. We will look at how you can implement the fixes and your next steps to immediately improve your cash flow and reduce your accounting costs.   Gerry Anderson,...

5 Signs Your Bookkeeping Is Failing You and What You Can Do About It.

  Business owners don’t really think about accounting processes.  So long as the cash is flowing, they think everything must be OK.  Unfortunately, they often don’t recognizing the signs that accounting is not running well at all.    Here are a few key indicators that should raise red flags for a business owner:   Inflated External Accounting Bills Your external accountant should not have to redo your books or be asking for a lot of invoices and receipts at tax time or year end.  If you find your external CPA firm or accountant is suddenly charging higher rates you need to take a closer look at billing details. If you find work that should have been done in advance by your bookkeeper then it is a sure sign your bookkeeper is not completing the work assigned before submitting it to the CPA. The rule of thumb is that firms requiring external reporting should pay no more than $1,000 per million dollars in revenue.  More than that and it’s an indication something is wrong in accounting.   You are getting No or Poor variance analysis and discussion on the financial results of your business by the 5th day of the month Every month, you should have a complete package providing you with a comprehensive set of financial reports plus key performance indicators and a list of expenses or revenue numbers that are outside of expectations.  If you don’t receive this information by work day 4 at the latest, you can bet that there is a lot of room for improvement here.   You see unallocated or miscellaneous transactions lined up in...

Cloud Based Accounting – Why you need it. Now.

The internet has changed the face of business today and is continually redefining the landscape. Traditionally, a user’s desktop computer (called a client) or server was fully contained with hardware and software. This means that accessing data and programs was done exclusively within client server structure.With today’s rise of the internet and ever-present devices such as tablets and smartphones, the new approach is Cloud Computing and previously unattainable benefits are now at your fingertips. Cloud based systems allow the access of data and programs outside of one’s own computing environment. Applications, databases, email and file services are stored in ‘the cloud’ instead of internal storage in PCs. Although the original attraction of the ‘the cloud’ is safe data storage, unaffected by crashes, disasters and “oops” moments, there are many other benefits of the cloud: No need to start over The idea of moving operations to cloud computing is daunting for most businesses that rely on traditional methods of computing. This poses a significant hurdle while switching from the existing hardware and software on the PC to a cloud application. In reality, cloud services offer a seamless transition. Meaning, small businesses that don’t have the time to reformat and update years’ worth of files can switch to cloud services very easily. Features like integration of data from current office software and web apps help a business to be on the same page without making a fresh start on cloud. That’s great news! Sharing, collaborating and document control Cloud storage revolutionizes the internal communications of many small businesses. In the absence of cloud computing, employees have to send files back and...
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