|Posted by dwest on February 23, 2010 at 12:38 PM|
Yes, we must enter transactions (information) into our databases correctly to get the output we need. And I advise not to take short cuts to do this. It does return to haunt a business in many ways.
How do you get the correct information out of this database? A business needs to measure what they are doing. This is a continued measurement and does not stop. Accounting Professionals have always been a part of the overhead expense in the past. Yet, the information measurements created may be used by Sales/Marketing Teams.
How long will the cash last? How is the cash used? How do you create more? Where are the sales coming from? What should we target in the future?
This process is a science of itself. Each step is valued along the way and should not be taken lightly. I saw a Twitter post by Sean Murphy, SKMurphy which focused my own thoughts on Accounting. Sean quoted Rick Munden, "At a distance big companies look like aircraft carriers, but close up you see they are really a thousand canoes."
Accounting operates like this. It is those thousand canoes that track and measure results which Executives value. If one of the canoes turn the wrong way or capsizes, (employee/contractor terminates - sick, disabliltiy or leaves), negative results may happen.
It takes time and expertise to build a valuable accounting database. One may learn to enter one transaction in an hour, it is the complete process which assists your business with measurements.
~ DW Business Consulting, One on One Training with patience ~