Nov 21 2023 56 mins
When business owners initially try to start using financial performance metrics to better manage their businesses, they often struggle to get accurate, timely, and consistent metrics reporting. Usually, this is because of inadequate accounting operations.
In this episode we discuss the 3 pillars of accounting operations and the Finance Stack and typical areas in which each may need to be upgraded: People, Process, and Technology.
We define the roles and responsibilities in the accounting and finance function:
- Bookkeeper
- Accountant
- Controller
- Chief Financial Officer (CFO)
- Tax Preparer
We clarify the differences between accountants, tax preparers, auditors, and CFOs as they relate to small businesses.
We discuss how small businesses can determine and get the finance stack they need at a cost they can afford.
Next we tackle two of the most important processes in the accounting function:
- The monthly close process
- Accrual accounting processes
Finally, we review technologies that streamline and reduce error risk:
- General ledger software such as QuickBooks
- The importance of an organized, segmented Chart of Accounts including a rational account numbering scheme
- Accounts Payable (A/P) automation software
- Accounts Receivable (A/R) automation software
Sponsored by SmartBooks. To schedule a free consultation, visit smartbooks.com.
Thanks for listening!
Host Cal Wilder can be reached at:
[email protected]
https://www.linkedin.com/in/calvinwilder/