Business accounting setup
An effective and value-creating accounting setup often consists of different systems which will make it easier and more manageable for you to run your business. Systems help to create the foundations and form the framework for your finances, so you can make the best decisions for your company’s growth and development.
The DigiMatcher team
There are many ways to do it, when it comes to streamlining your processes regarding finances in relation to establishing a good accounting setup.
The way of handling finances (such as bookkeeping, accounting, salary etc.) can be different from company to company. There might be a difference in how many processes that need to be optimized and digitalized in your particular situation. And remember; you rarely get the most optimal setup by simply choosing the same systems that someone from your network uses.
Furthermore, there can be differences from industry to industry when the finance function is going digital. We will therefore recommend you to outline how your company’s accounting setup is now or how it should be structured. Then it becomes easier for you to see what you are missing to get a good accounting setup.
What can an accounting setup contain?
We would like to give you an insight into how an accounting setup can be automated and which sub-elements can support your company’s finances. Of course, it is not the same in all companies and industries, but still, it might inspire you. There are some basic elements that several companies have in common.
Let’s take a closer look at the following sub-elements:
- Revenue channels
- Attachment handling
- Payroll management
- Project management
- Inventory management
When we talk about revenue channels, it’s about how you handle and receive your revenue.
In addition to the revenue channels themselves, which are a touch point with your customers, you must also think about how you want the setup in relation to the payments, as well as how your reminder procedures should work in the event of non-payment from your customers.
The revenue channels can be a manual customer invoice, cash register, webshop etc., where each channel can be managed through different systems. It is expensive to choose the wrong systems from the beginning, as it will cost you both money and time.
As you’ve probably noticed, when you do a Google search or ask your network, there is a huge variety of digital tools on the market today, all of which can handle different workflows. But we know that it can be difficult to get an overview – that it can be difficult to compare the systems with each other.
There are many ways to process your bookkeeping documents – and just as many aids. It is therefore important that you define how you want your attachments to be handled, and which method of procedure makes the most sense, such as internal approval of appendixes etc.
You must decide the extent to which you want automation of the process, including automatic payment of invoices, and handling of complex workflows internally.
It is also an option to have data read from the attachment to the bookkeeping and thus have it archived digitally in the accounting system when the invoice has been paid.
Now you may be thinking: “Do I need to handle my documents digitally?”
YES, soon you will! Because if you haven’t heard it yet, there will be changes to the Bookkeeping Act from 2023, which means that all documents must be booked digitally. Therefore, you can already prepare now by finding the right system for this.
When it comes to payroll management and choosing a system, you must consider whether you want to handle payroll internally, and to what extent your employees should be involved in the process.
An example could be that you want the employees to submit the hours themselves for approval directly into the payroll system, or conversely you want a project management system that can automatically deliver the hours to the payroll system. In addition, there are several payroll systems where the employees themselves can keep up to date on their own holidays and time off – and where they can also request holidays digitally. This means, for example, that the manager or the person responsible for the payroll can allocate a lot of time to administration and thereby use the time more sensibly.
This particular element is very interesting if you would like to optimize your way of reporting – instead of spending a lot of unnecessary time looking through the balance sheet.
The balance sheet of course provides much of the information you need, but reporting can also be served in many other effective and insightful ways. It is also not uncommong to not have the right knowledge or lack of knowledge when it comes to how a balance sheet should be read and understood. Here, it is even more relevant to find a tool that can provide insight into the economy – and reporting.
There will always be certain key figures that you want to know about your business. It is conceivable that you want to compare your figures with others in the industry or that you dream of smart dashboards that are up-to-date and can be shared internally/externally. In this way, employees, managers, investors etc. can gain insight into and knowledge of how performance is across the company.
With a project management tool, you get a structure and an overview of your time and your projects. It is an indispensable tool for optimizing your internal processes, planning, and monitoring.
You get a better basis for analysis with insight into how to develop your business: “Which projects do we make money on, and which ones should we preferably avoid saying yes to in the future?” Thereby, you can more easily deal with the finances for the various projects, etc.
The system will also help your employees register their time directly on the projects, so you get better management internally.
When you look at the finances of the previous projects, you also get a fair basis for the future bidding for similar projects/cases.
Warehouse management helps to create a better overview of all your goods in the warehouse. The system creates an interaction between your purchased and sold goods, so that the inventory is automatically updated.
You therefore avoid selling goods that are not in stock, and the stock will be constantly updated. You also avoid an item being backordered, and you can easily order new items from the supplier if, for example, only 20 pcs. Left of a certain item.
Purchasing from the suppliers can also be done directly in the warehouse system, so you can send your orders to the suppliers – for different items. Warehouse management systems offer a streamlined process and take care of the logistics and its management.
Where should I start?
Lots of different systems exist to optimise and digitalize processes when it comes to finance.
We fully understand that it can seem like an overwhelming process, and it can be difficult to know where and how to begin.
Therefore, DigiMatcher is, among other things, set in the world to help companies find their way around digitalization. We promise to guide you and find exactly the system providers that suit your company’s needs.
The analysis is free for you to use, so answer the questions about your needs – and then we’ll have a talk about how we can help you to optimize your accounting setup.