In a typical small to medium sized business, it is fairly common that human resources (HR) are responsible for maintaining the payroll and financial records. However, many owners and managers do not enjoy the kinds of finance process optimisation administrative duties that a financial controller or bookkeeper provides. Financial finance professionals can perform records management tasks that most small companies can't...at a substantially lower rate of payroll and cost.
For these companies, using a financial services advisor for records management is the logical choice. It allows the independent contractor to focus on the revenue-generating aspects of the business instead of the tedious data entries. Already, top record keeping asset companies are offering important finance process optimisation financial services such as payroll management, accounts payable and receivable and general bookkeeping, thereby protecting your company's confidentiality, regulatory compliance, and employee wellness, while the financial services company handles all the record-keeping.
The benefit of taking advantage of a financial services company's extensive experience in obtaining correct tax and finance process optimisation accounting documentation, such as obtaining and maintaining payroll distribution tables and accounts payable records, as well as handling general bookkeeping, is two-fold: your employees is free to do their own accounting, making their company more money, and also, the business can avoid some very expensive add-ins, such as not converting bank checks to debit checks and other thematic discrepancy(s).
Another value of an outside financial record-keeping team consists of a standard amount of savings compared to the time it takes your own personnel to accomplish these important tasks. When there are fewer records to process in-house, the financial company with which you work may charge less for their finance process optimisation accounting, IRS reporting, and tax advice. There are many savings available.
Plus, when it comes to the additional expense to your company for the time spent performing these financial tasks, and the impact of Errors and Omission, you may run a significant loss of productivity.
While not every accounting system used in organisations is the same, the most common is the Cash or accrual system. The predominant reason for this is for simple record-keeping, pre-taxing, or to share with the payroll department.
Most companies are familiar with either the Cash or the Accrual system, meaning double-entry accounting, and are not aware of the finance process optimisation financial services in which a financial company with the expertise of financial record-keeping services provides the services. Many companies hear them and take them as gossip, yet it's usually a correct reflection of what you have been missing these days to address "big picture" issues.
In addition, a financial advisor can help talk to an appropriate expert about where to go in order to build a balanced budget. While it's easy to say "my company's budget is just a number," it's sometimes surprising to realise that it's indeed like that, yet most finance process optimisation companies resort to using an accountant who knows how to set the budget and then let it go out the door, without having the managerial skills to understand how to make it work for their company.
Many organisations are just starting out, as they don't know where to begin, or don't even know their expense accounts and accounting...if they have determined they are doing it in the Cash System. Having said that, many companies end up leaning towards the "accrual mentality" that outweighs being the Cash system. Some companies get into the habit of just using the "penny system," instead of having a true finance process optimisation balance sheet that gives an account for every expense, and the correct yearly balance.
Finally, the benefits of taking advantage of the work of a financial services advisor will give you increased employee responsibility, accountability, and increased productivity.