The implementation of best practices is a hot topic with company managers during these trying economic times. While some businesses employ best practices without calling them that, they’re simply generally accepted preferred ways to accomplish the tasks that a particular industry has to do. Human resources departments have them, as do specialties in the medical field, information technology and just about any profession you could name.

Accounting has them, too. Though they’re not carved in stone, and not everyone adheres to them, they’re considered to be the most effective ways of doing business in the hope of achieving a favorable result.

Here are some simple examples:

  • Invoice at the time of sale rather than once a month.
  • Send invoices electronically to speed up receivables.
  • Review critical financial reports frequently.
  • Use a merchant account so you can accept credit card payments.
  • Build and send sales orders periodically to frequent buyers so customers stay on top of their obligations.
  • Use online banking tools to keep a closer eye on finances.

See? It’s just kind of common sense.

Best practices are more than just procedures. They can help you make changes in other areas that will move you closer to achieving business goals. Successful businesses use the information gleaned from accounting reports, for example, to find ways to cut costs and improve revenue for the company as a whole.  In that sense, the accounting department becomes much more than just the mechanical operation of crunching numbers.

Accounting departments that use best practices can highlight those activities that are producing the most revenue with the least outlay of cash.  So many businesses have found that analysis of accounting output can be a key to increasing profitability.

By discovering and employing the best practices most appropriate to your company’s accounting operation, you are likely to see some financial improvement quickly.  This is why it’s important to use accounting best practices.

The experts at Net Plus Consulting are ready to answer all of your questions regarding not only best practices for accounting, but also any general business issues you many have.  Call us at 212-461-3300 to set up a consultation.

Net Plus Consulting is a nationwide service provider.  To get started, check out our website or contact us to arrange a free one hour consultation.