We've come up with a few tips for you that will hopefully help you see how to achieve a sustainable cost conscious culture in your organisation, with help from some new, modern accounting software. You could see cash savings of anything from 5% to 10%! If that doesn't make you want to read on, we don't know what will!
Trust your staff
The best way to gain respect and cooperation from employees is to trust them to make the right decisions. Having a devolved accounting system and software will allow individuals to make purchases with minimal effort. So staff are happy, and so are the finance team as the procurement process is sped up, allowing you to easily keep an eye on expenditure.
Most pieces of modern accounting software can be configured so that limits or rules are applied to particular departments when it comes to buying. For example, if someone buys too many paper clips (it could happen!) and it exceeds the set limit, then the system will alert someone who can provide second level approval.
Tighten & streamline the approvals process
Using an electronic based procurement system, like most technology, will make things a lot easier and will certainly speed up your whole procurement processes. Individuals can set up POs, email them to the necessary person for approval, and that person can then approve quickly. Gone will be the days where orders get stuck in someone's in-tray, or lost in the post.
Devil is in the detail
When looking for areas of wasted expenditure, it's easy to look at the big purchases. Try and look at the total that the small costs amount to over the year. I bet you'll be surprised! Once you've spotted where savings can be made, try and put rules and limitations in place (like the ones we mentioned earlier) but just let the relevant person know!
Use real-time financial reporting to spot inefficient spending
By having an accounting system that's up to date, through the use of devolved accounting software, you'll be able to produce up to the minute finance reports showing you spend for certain departments, making it easier to review and evaluate processes. Also, giving budget holders instant access to this information will further help them control spending.
Tackle those maverick spenders
Maverick buying; that is goods being purchased without approval, can be very expensive.
A modern accounting system should help prevent these kinds of purchases. PO numbers can be hidden until the necessary approval has been given, pretty nifty!
Make it last
Using a devolved approach to accounting makes the whole process easy and transparent, setting a good balance of control and trust. This is easily achievable with the latest technology, especially with cloud accounting software, and means the finance team don't have to look into the finer detail of the purchase ledger meaning more time to focus on strategic tasks.