Whether you operate a for-profit business or a nonprofit organization, strong accounting practices are essential for maintaining financial health and making informed decisions. From creating budgets and monitoring results, to preparing accurate financial statements and complying with tax and payroll requirements, these activities depend on accurate, timely and consistent processes. But even well-designed systems can become outdated or inconsistent over time. Our CFO advisory specialists share three simple ways to enhance your accounting function and keep operations running smoothly. 

1. Enhance Oversight and Reconciliation 

Management oversight is a critical component of internal controls over financial reporting. For starters, your CFO, controller, bookkeeper or outsourced accounting services provider should regularly review monthly bank statements and financial reports for errors and unusual activity. Quick reviews can prevent minor discrepancies from turning into major issues later. 

It’s also smart to establish clear policies for month-end cutoffs. Require all vendor invoices and expense reports to be submitted within a set period (for example, one week after month-end). Delayed submissions and repeated adjustments can waste time and postpone financial reporting. 

Finally, don’t wait to reconcile balance sheet accounts until year-end. Doing it monthly can save time and reduce stress. It’s much easier to fix mistakes when you catch them early. Be sure to reconcile accounts payable and accounts receivable subsidiary ledgers to your balance sheet to maintain accuracy and visibility. 

2. Standardize Workflows 

Designing a standardized invoice coding sheet or digital approval process can improve accuracy and speed. Accounting staff often need key details, such as general ledger codes, cost centers and approval signatures, to process payments efficiently. A simple cover sheet, approval stamp or electronic workflow helps capture all this information in one place. 

Include a section for the appropriate manager’s approval and multiple-choice boxes for expense allocation to departments, projects or programs. Always document payment details for reference and audit purposes. 

Also consider batching your work. Instead of entering or paying each invoice as it comes in, set aside dedicated blocks to process multiple items at once. This saves time and reduces task-switching inefficiency. 

3. Maximize Accounting Technology 

Many organizations underuse their accounting software because they haven’t explored its full capabilities. Consider bringing in a trainer or CFO advisory consultant to help your team unlock automation features, shortcuts and reporting tools that can save time and reduce errors. 

Standardize the financial reports generated by your system so they meet your needs without manual modification. This improves data consistency and provides real-time insight, not just end-of-month visibility. 

When possible, automate recurring journal entries and payroll allocations. Most accounting systems allow you to set up automatic postings for regular expenses, payroll distributions and accruals. Just remember to review estimates against actual figures periodically and make any necessary adjustments before closing your books. 

Support for Smarter Accounting 

Accounting practices are continuously changing, whether due to internal circumstances or advances in automation, cloud-based systems and AI-driven analytics. Reviewing your workflows regularly can identify steps that could be automated or eliminated if they don’t add real value. Not sure where to start? Our CFO advisory specialists are here to review your systems and brainstorm practical ideas to modernize your accounting function, enhance efficiency and improve financial oversight.