Managing Finance More Effectively
Many senior finance executives want their department to play a more strategic role in the management and operations of their company. They believe there is value in shifting their focus from processing transactions to higher-value functions in order to be able to make more substantial contributions to the success of the organization. Continuous accounting can serve as the foundation for transforming the role of the department.
Continuous accounting is an approach to managing the accounting cycle that embraces three major principles:
- Automating mechanical, repetitive accounting processes (such as allocations and reconciliations) in a continuous, end-to-end fashion to improve efficiency, ensure data integrity and enhance visibility into processes
- Distributing workloads continuously over the accounting period (the month, quarter, half-year or year) to eliminate bottlenecks and optimize when tasks are executed
- Establishing a culture of continuous improvement in managing the accounting cycle. Such a culture regularly sets increasingly rigorous objectives, reviews performance to those objectives and makes addressing shortcomings a departmental priority.