The opposite of Garbage In – Garbage Out is very well worth considering if you want your finance function to produce meaningful and useful financial information for your business.
Information that helps you to:
- improve profit margins
- monitor profit on projects, customers, services and products
- get paid quicker
- improve cashflow
- be less surprised!
There are three building blocks to keep in mind and to keep in sync with each other.
Financial information
Have a very clear view of the financial information your business needs so it can grow, improve profitability and generate cashflow.
Set up the reports you need in your accounting software. Spoiler alert – not all accounting software is good at reports!
Chart of accounts
Your chart of accounts is the DNA of your bookkeeping – essentially a list of all the accounts you want to classify your transactions in to. Watch the video in this blog to learn about the CoA.
Data entry
Make sure your data entry flows into your chart of accounts and into your reports. Keep your bookkeeping up to date and ensure it is accurate.
Some document processing apps – AutoEntry and Dext for example – can make data entry substantially easier, consistent and more accurate.
Of course, businesses evolve – new products, services, markets etc. – so it’s important you keep these three building blocks under review and in sync with each other and in line with the path your business takes.
Their deep understanding of our unique needs and challenges was evident from the outset. They provided unwavering support to our team, ensuring they felt confident and well-prepared for the changes ahead.
Finance manager
Do you want to see the opposite of “Garbage In – Garbage Out” in your business?
We help a lot of businesses to improve their financial information using the three building blocks discussed above.
Not getting these working for you means you’re out there competing with one arm tied behind your back.
So, can we help you?
Call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk and let’s have a free-of-charge chat about your business.
Michael – @bluedotmichael
Related links:
Why don’t businesses make better use of accounting software?
You can have any expenses you want – so long as they’re Direct Expenses
Monthly management accounts – five steps to useful numbers
Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW
