In Pursuit of Profit
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Architecting and building a successful accounting department is critical to a company’s growth and success. One of the keys is ensuring your accounting team has a thorough and complete accounting manual to instruct them on how, why, and when to account for all financial transactions within the business.
Just like a general contractor needs an official set of complete plans from a professional architect to ensure a successful build, so an accounting department needs a professional and complete accounting manual to ensure accounting operations are run with integrity and efficiency while maintaining all universal compliance requirements. I have been in many accounting environments across various companies throughout my career and the best and most efficient accounting environments all have one thing in common – best-in-class accounting manuals. Why? Let’s look at the ways an accounting manual brings value to a company.
Other times they are more internally motivated, looking for ways to improve and standardize the handling of their financial data to facilitate growth.
Either way, many businesses come to us looking for a set of generic standard accounting policies and procedures that they can just copy. We understand the rationale here. Why reinvent the wheel if you can just take what someone else is already using it and tweak it to fit your company’s needs? And in all honesty, there is nothing wrong with modifying an already existing manual if you know why your business needs formalized accounting policies. However, simply creating accounting policies based on someone else’s business practices without an understanding of why you are doing it and what kind of outcome you are looking for is not the right strategy. |
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