Benchmarking Accounting Costs

With today’s economic climate and fierce competition, companies today 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.  The article can be found here.  What is very interesting is 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 big change in the last 5 years is that the cost of technology to acheive those savings are as low as a few dollars per day as opposed to hundreds of dollars per day in the past.  With new technology we are now integrating for our clients, we are seeing accounting costs tumble for some small and mid sized companies drop 30% to 60% in some cases. If you want to find out more, just contact us and we can show you...

Task Automation

Would you like to begin to enjoy the benefits of a four hour work week? Would you like to have more time to do what you want and less time doing monotonous tasks? Then you need to start leveraging the power of the internet and the power of today’s technology. You need to start with task automation. What is Task Automation? Task automation is the use of various systems and technologies to minimize or reduce the amount of human intervention to complete the task or process. What are examples of Task Automation? Let’s look at completing a telephone call. When you dial, do you need to talk to an operator to help route your call and wait until that operator is done? OR, do you just punch in a number and the call is immediately connected to the phone of the person? That is Task Automation. When you got to an ATM and withdraw cash, do you ask a person to give you the cash and wait until that person is done? Or, does the ATM immediately dispatch the cash after you ask for it? That is Task Automation. Remember in 1981 when the word processor was introduced by Digital Equipment?  The cost PER INDIVIDUAL WAS OVER $15,000 But productivity for those companies went up 400% or more, generating them more profit and making a lot of executives rich! Today, you can get even better word processing technology for $199 or even free! Today, technology to automate your tasks is now available to individuals, small and mid sized businesses that was previously only available to the largest of corporations....

Payables Automation – Everyone can do it

Last week, we met with a rapidly growing software company that was a global leader in their niche.  They continue to grow in the double digits.  However, their cash flow and profitability was hampered by two issues – travel/expense processing and accounts payable. We showed them our paperless accounts payable and expense processing solution.  Almost immediately, their finance and accounting team realized they could cut their time to process invoices and expense reports by 90%.  They would also be freed up to take on more responsibility, particularly working with the sales and services team to improve profitable growth and cash flow.  With that, they are now planning to go live in August with our solution. As we connect with accounting functions across a wide range of industries and show them the tools available to automate their accounts payable and expense reporting, these same accounting functions soon realize the power they can tap into to become a ‘key person’ for their company. With our paybles and expense report automation solutions in place at other clients, our clients’ transactional accounting functions are rapidly lowering their per invoice processing costs while dramatically improving transparency, visibility and control.  They are soon becoming a source of advice (i.e. spend analytics) and a role model for other functions on control, efficiency and effectiveness. Like any accounting entry, there are two sides for every automation solution.  AP and expense report automation is having some positive impacts to the organization.  By eliminating manual efforts, people’s time is freed up to take on new work and assignments more valuable than shuffling paper and data entry.  We have seen accounts payable departments become internal auditors and spend analysts as opposed to employees...

Office Automation System

One of the biggest problems we see at many companies we visit are overworked staff in the back office.  We see many of them are just trying to survive, getting their work done with the tools given to them with no understanding or knowledge how to make work more enjoyable or free up time for customer service, innovation or taking on more work. With the rapid expansion of the internet, the increased digitization of data and rapid decrease in technology costs, employees and companies can now put in a office automation system that will reduce overtime, processing times and improve morale. To begin building your office automation system, I recommend you ask three questions: What process or tasks causes me the most stress or anxiety that I would like to have an office automation system take over? If there is one task that I would like an office automation system to take over, what would it be? What would be the benefits to me and our company be by putting in this office automation system? The benefits of asking these three questions is it will begin to activate your creativity and allow to begin to see that cost effective solutions to automate your problems are now available to you.  It will allow you to ‘connect the dots’ by seeing how leveraging a bit of technology at the right task or step in the process will generate huge returns. In conclusion, identifying opportunities for a office automation system is not hard.  It just takes effort to slow down and pay attention to what is going on around you.  You will...
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