Sales is actually just a small element of operating a business, a huge part of it actually depends on the handling of data and using those to make valuable and impactful decisions. This is why accuracy is vital. Otherwise, incorrect information can overwhelm and potentially bring down the business.
Thankfully, there are certain measures that Company Finance Officers can practice to ensure errors will be avoided and important data won’t be compromised because no matter how attentive to detail an employee is, he/she is still prone to mistakes because it’s innate part of our humanity.
Here we have compiled some of the important elements to achieve in order to perfect financial reporting:
1. Automated Accounting System
This first element is one of the most important because once this is achieved, the company has already done a great deal in ensuring an error-free operation. Automating your data-collection, processing, and storage systems will remove the human aspect of these tasks and will turn them over to programs which such high precision.
There are financial planning and analysis tools available like Accsiv – Visita Solutions Accounting + Inventory Software, which are programmed to automate repetitive work such as data consolidation and aggregation resulting in a corresponding external source and reliable database.
Without these tools, finance officers usually spend a significant amount of days on manual data gathering from different sources. That adds up to the time they spend bringing everything together and making sure all information is correct. This valuable time could have been used for more important tasks vital to the businesses but there was not much choice before.
So now that there’s already something that can be done company execs must be willing to seize the opportunity.
2. Accurate data
Automation would still mean nothing without reliable data. Time, resources, and efforts would still be wasted. What must be ensured is that the information being gathered can be trusted and used accordingly.
There’s a process called Data Cleaning. It is a vital step in gaining significant, actionable, and useful insights. But keep in mind that automated reports are still prone to encoding mistakes. It usually happens when we still leave it to employees to decide which data points are highly significant and worth being given the emphasis on.
3. Streamlined Data
There’s a common issue with companies that heavily rely on data. It involves focusing on ALL potentially relevant data sources. According to experts, that is unnecessary though. Instead, what should be done is reduce sources where data is collected, cleaned, and analyzed. This way, more opportunities are opened and misunderstandings are cut.
It must be noted that more data doesn’t equate to more useful information. Relevance is the key to making data truly valuable and useful. By absorbing everything, the company is just being put at risk of human errors.
4. Investment in Basic Excel Skills
Excel Proficiency has now become a standard for prospective employees in companies that involve handling data. Merely being trained won’t exempt anyone from making mistakes but being skilled with it will do a lot to be competent.
It is the employer’s responsibility to invest in training their employees in basic excel knowledge and skills. Encouraging them to take training will boost their morale and productivity at work.
When all the concerned individuals already possess the necessary knowledge and skills, this will make it easier for the company to develop their systems and deploy modern programs because their staff won’t find it that difficult to adjust.
In the end, mitigating risks boils down to making decisions and embracing change. Know that open-mindedness gives way to finding the best information available.
