One of the most important aspects of successful accounting for a business is organization. Transaction records, tracking and reporting on areas of the business all fundamentally revolve around organized data and information.
But successful accounting isn't just about being organized, it is about organizing the data correctly, and that is where some businesses struggle. When a business is new, it may be easy to keep track of its accounting to quickly put together clean and accurate financials. But as a business grows, the volume of data increases, and it adds a higher level of difficulty to stay on top of.
Trying to juggle all of this results in unreliable and messy books that make it difficult for business leaders to get an accurate look at the big picture.
How Bad Can It Get?
Any areas of error within a business's financials obscure the true picture of income and expenses within any given period of time. Trusting these inaccurate balances can be costly for a business and lead to decisions being made on inaccurate data.
A simple, miscategorized transaction can throw a wrench into multiple accounts and it creates a snowball effect of inaccuracies across the business's financials.
The mess of inaccurate financials creeps up slowly at first, but if it goes uncorrected, a business owner can find themselves in too deep with inaccurate numbers and it can potentially go as far as closing the doors of the business.
How Can It Be Fixed?
To permanently break the cycle of erroneous financials, better tools and procedures that support the data are required. A system like NetSuite can provide cloud accounting software that is an intelligent, rules-based engine that automatically classifies transactions, applies accounting treatments consistently, and assigns accounts based on defined criteria.
When a system is in place that consistently provides accuracy and efficiency for a business, it can be relied on to sort transactions properly, provide accurate reports, and more to put business owners at ease. NetSuite also has the capabilities for add-ons that are built for managing more complex processes, like accounts receivables, inventory management, and more. It provides users with a deeper level of control that most other systems do not offer. Netsuite reduces manual effort and the likelihood of human error.
By operating from one single source of data, it ensures that the information from NetSuite supports the accuracy and reliability of core financial statements. With a strong base, messy financial statements are a thing of the past, and generating clean and accurate financial statements is easier than ever for businesses.
