Too many companies are failing to make their accounting software work for them rather than against. Business and reporting needs change over time, and systems that were once acceptable may no longer be up to the job.

In establishing your reporting needs, we advise our clients to begin with the end in mind. Identify exactly what financial information you need to help control and drive your business forward.

Consider reviewing the set up of your accounting software. The Chart of Accounts essentially dictates the format in which your financial reporting information will be produced and is easily customised to ensure that management information is organisation specific, user friendly and in the format that will put you in control.

Most accounting software can also be tailored to accommodate the individual aspects of your business operations. For example, a number of businesses have different departments and cost centres and the Chart of Accounts can be designed to report in a department or cost-centre format thereby assisting with essential analysis.

The chart of accounts can also help with wider stakeholder reporting requirements and to flow through to statutory accounts production.

A number of businesses are comfortable running with older versions of accounting software packages and whilst this decision may save money in the short term, it could be short-sighted. The most up-to-date versions of accounting software have additional features that would help you and your wider team.

With reference to product features and by way of an example, if a customer set-up wizard is fully completed and a credit limit assigned, then it is usually possible to produce supplier statements and exception reports aiding cash collection and enabling the business to more readily control customer debtor exposure.

As we continue to face financially uncertain times and recessionary pressures, it is increasingly important for businesses to control their debtor and cash-flow cycles.

Many businesses fail not from lack of profit but from a shortage of cash. Cash flow projections are another invaluable tool in placing management in an informed position to address any liquidity needs of the business well in advance of those issues crystallising. They are relatively easy to introduce and can be usually directly linked to existing accounting software.

Equally important in the business cycle is the control of costs. It is a relatively simple exercise to assign budgets to either cost centres or nominal codings thereby facilitating actual to budget comparison reporting. Armed with this financial information, decision makers are ideally placed to implement any necessary corrective financial action with a minimal lead time.

In summary, it pays to step back, review your reporting needs and to tailor your financial reporting to meet your needs.

We have helped a number of clients in this area and would be delighted to help you review your reporting needs and tailor your accounting system to provide reporting information that is focused and relevant to your business. We will also be pleased to support you, and your wider team, with any necessary coaching and ongoing advice.

For further information, please contact:
David Parfitt, Associate Director
T: +44 (0) 1784 497100
F: +44 (0) 871 6660640
E: dparfitt@menzies.co.uk