Maintaining a healthy cash flow is the lifeline of any business. Proper accounting offers insights into income and expenses, facilitating effective cash flow management. It’s astonishing how much money can be lost or mismanaged due to errors or suboptimal accounting practices. Believe it or not, it occurs more frequently than one might expect!
At 512Financial, we help companies gain clarity on the underlying factors driving their cash flow. We achieve this with simple steps such as reconciling their balance sheet and by finding discrepancies in accruals and payroll-related entries that were not previously being recorded. Most of our clients are smaller to mid-sized companies. Your firm might not be ready for the costs of an in-house accounting team, or you might prefer a team of experts stepping in to improve your accounting systems and ensure accuracy.
A Fractional Accounting Team Can Help Optimize Systems to Get the Most Out of Your Financial Data
Tracking your company’s financials accurately and in a timely manner helps identify areas where spending can be optimized, where strategy can be improved upon, and ensure good financial health. Proper accounting sheds light on expenditure and cash inflow patterns, allowing companies to streamline operations, eliminate unnecessary costs, and boost profitability.
Our Senior Consultant, Meredith Guerrero, encountered a scenario where a company did not have their billing system synchronized with Intuit QuickBooksOnline. By setting up Transaction Pro and working with their software team to create ad hoc reports that would feed into QBO, she was able to ensure up-to- date billing data and allow them to see their cash inflow in real time.
Similarly, Senior Accounting Consultant, Niki Aguirre, worked with a smaller 50 employee research services company that was entering their accounting data for seven different subsidiaries manually, making it near impossible to figure out the financial health of the company. Entering cash inflow and outflow manually led to a massive time constraint as well as room for error. Niki went in and found a function in QBO that ran the trial balance report for all seven subsidiaries at once, and created an excel file that then mapped each of the subsidiary’s COA in a way that automates the output to fit the preferred format. Now, the team just runs one report, pastes the data in a table, and clicks refresh to get all financial information in an accurate and organized manner that makes it easier to analyze and make informed decisions.
512Financial Provides Accurate Invoicing and Improvement to Your Collection Process
Quality accounting ensures timely and accurate invoicing, improving the collection process and therefore cash inflow. Managing accounts payable efficiently ensures maintaining good relationships with vendors, potentially leading to discounts. It also reduces the risk of overdue payments and bad debts through better assessment of client and customer creditworthiness.
Furthermore, proper accounting allows businesses to understand their working capital better and optimize it by managing inventory levels, accounts receivable, and accounts payable effectively.
512Financial was able to help a mid-sized network security company with around 200 employees improve their close time to under 10 business days while also improving accuracy and consistency in their accounting. Our seasoned Senior Consultant, Alex Victor, improved their invoicing and collections processes, drastically strengthening their cash flow. He also changed Salesforce requirements to simplify processes, such as ARR reporting. From his experience, Alex has seen how having proper financial and accounting helps executives make smarter, better-informed decisions, and lead their company to success.
From invoicing and receivables to vendor management and working capital optimization, accounting plays a pivotal role in ensuring a steady and sustainable flow of funds.
Accounting health is about your company’s bottom line and ability to make the right business decisions quickly. Let 512Financialand our team of experts ensure accuracy and speed for you and your team.
Contact us to learn more about our accounting and financial fractional services!