Last updated on June 16th, 2023 at 05:40 pm
Your accounting and payroll department is certainly in the mind of every single one of your employees, and it is one of the most important functions of your business. Not only is this sector essential to the smooth running of your company, but the strength and efficiency of your accounting and payroll are also strong indicators of how your business stands up against industry rivals. With that being said, continue reading for a comprehensive guide to streamlining your accounting and payroll department.
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Utilize Corporate Purchase Cards
When it comes to employee travel and smaller purchases made for the company across all departments, instead of accounts payable handling products, services, and equipment under one hundred dollars, it would be much more prudent to hand-out purchase cards.
The best way to do this is to distribute one employee purchase card per department and assign just a few team members within the department who can have access to the card. This way, it will be significantly easier and faster, to process expenses and consolidate similar payments, making for a more efficient process overall.
Consider International Payroll Services
Another hugely advantageous decision, specifically if your company has a multi-national team which is stretched out globally across many different countries, is to invest in international payroll services from an experienced third-party business.
Investing in international payroll and accounting services will dramatically improve the department’s productivity levels, ensure consistent, accurate, and thorough data input, produce more detailed analytics and financial reports, and save your company money on delivery costs.
Boost Your Credit Management
Depending on the nature of the products and services your business provides, you may well only deal with large corporate customers and clients who you have built a solid working relationship with. However, if this does not sound like your business, then another fantastic way to streamline your accounting and payroll department is to work on boosting the management of your credit.
It may well shock you to learn that there are many companies, likely some of which are in your industry, which take expensive, multiple orders, and deliver to customers and clients whose credit has not been checked.
Credit checks themselves, even if they come with a positive outcome, take time, let alone if there is a problem with payment further down the line and, obviously, any delays with processing payments will cause issues and negatively impact the payroll department.
Use a Standardized Chart of Your Business Accounts
If your company has one or more subsidiary businesses, or else different offices that work in separate areas, it is vital, if you have not already, to work from an identical list of payables, receivables, and cash that come together to be the company ledger. Unification of such important aspects of your accounting and payroll is a sure-fire way to increase productivity.
As well as the use of a standardized chart of your business accounts, you should also, especially in the case of global accounting across international businesses, have standard issue guidelines which can code transactions.
Freight Payment Outsourcing
Outsourcing, as touched upon earlier in this article, is becoming more and more popular in business, particularly within such industries that have more of a global reach and, as such, choosing to outsource how freight payments are processed would be an excellent and forward-thinking move.
When it comes to time-sensitive accounts and payment procedures, outsourcing them to an established third-party business will ensure that no stone is left unturned. It would be prudent, however, to point out that such a decision should only be implemented in the case of companies with a regularly large shipping volume.
Lessen the Standard Monthly Closing Time
Finally, another key way to streamline and subsequently, strengthen, your accounting and payroll department is to work to reduce the closing time of the accounts for every month in the financial year. As financial statements for the month are usually published in the month afterwards, this gives the management virtually no time at all to deal with any issues with financial matters.
Instead, as a company, you should aim, with the help of an integrated accounting software package, to shorten and even entirely eradicate this lag, and then you will reap numerous benefits.