Whether you have an established business or are planning a startup, you will find that much of your success is dependent on the efficiency and effectiveness of your financial management. The department that typically controls a company’s financials is its accounting department. Therefore, these are some best practices you may consider.

Pursue Automation

Because this department does not produce anything that makes money, it is often seen as a drain on a company’s finances. Although knowledgeable accountants are vital to the success of a company, this department must consistently search for ways to increase efficiency.

One way to meet this goal is through automation. Manually creating invoices, entering figures, and preparing taxes can result in errors that can cost the company. However, many manual tasks can now be automated through software.

Therefore, complex and redundant tasks should be automated as much as possible. Today’s technology and software solutions can analyze data, build reports and help you manage your company’s cash. Removing these tasks can encourage collaboration and increase flexibility.

Promote Communication

The executive management team needs to maintain open communication with the company’s accountants. These two groups must be active collaborators. Management needs to understand the company’s financial position as it prepares for and pursues new goals, while the accountants need to know how these initiatives will impact the company’s financials. These individuals may also have innovative ideas and valuable information about new goals.

In addition, your accountants need to understand everything you expect of them so that they can do their jobs well.

Promote Departmental Collaboration

Your accounting department needs to be in constant communication with your management team as well as every other department in your company. They need to feel comfortable discussing expenses and revenues with production and sales. This department depends on other areas of your organization. Your accountants cannot do their jobs if they don’t receive receipts, invoices, or other information from your other employees in a timely manner.

Provide Training

Many firms make the mistake of only providing training when a new employee joins the company. However, to improve efficiency and effectiveness, your entire staff should be regularly evaluated and provided appropriate training. This is especially important for your accountants. Every year, laws, technology and processes change in this field. You need proficient employees, and they need to understand how to research and use the most up-to-date technology.

Conduct regular performance reviews to identify knowledge gaps, so that you can provide additional training. Cross-train these individuals so that everyone on your team has the same knowledge and capabilities.

Every part of your business is ultimately managed through your accounting department. Consider these best practices to help and support these professionals.