Hidden Costs of Outdated Accounting Processes

Hidden Costs of Outdated Accounting Processes

When it comes to sustaining both growth and profitability for your business, it’s all about having a proper workflow. If everything is in working order, why change systems or update to new technologies? While daily operations may seem to be fairly efficient at first glance, there could be several issues bubbling up under the surface, preventing your company from reaching its goals as easily as it could. Oftentimes, the hidden costs of outdated accounting processes end up bleeding your budget dry without notice. 

Hidden Costs of Outdated Accounting Processes

illustration of man losing money and struggling under downward arrow

It is a good idea to get into the habit of evaluating your accounting strategies and practices to see if you could benefit from more advanced assistance. Indevia offers automated bookkeeping solutions to not only help your franchise stay afloat but reach its peak performance without breaking a sweat. 

Resource Costs

Your accounting department may be using unsavory accounting processes in order to meet goals or make ends meet. This could be due to the bookkeeper being old-fashioned or a general lack of education about the latest and greatest pieces of accounting software out there. 

If any part of the accounting workflow is not running efficiently, it can result in a lot of undue costs for resources that don’t go anywhere. As an example, budget approvals can be delayed, which costs more time and resources while bogging down the system. Over time, the lack of money upfront could force you to borrow bigger and bigger amounts while you try to dig yourself out of this financial hole.

Operational Blunders

There’s a reason why more and more small businesses are choosing to invest in automated bookkeeping services and electronic payroll programs. It is so much easier to ensure that all business operations are running smoothly when there is less clutter on everyone’s plate. Going paperless, for example, can greatly increase an organization’s workflow, especially with automatic approvals and timestamp programs to take care of payment needs in a timely manner. 

You can get invoices delivered, checks signed, credit cards charged, employees paid, and budgets tracked automatically with state-of-the-art accounting technology. This is the best way to avoid making continuous operational errors that could be costing your company a lot more than you know. 

Vendor Payables Costs

illustration of losing money because of bills

There are plenty of mysterious costs that often go undetected or get swept under the rug, all the while contributing to the holes in your company’s boat. Hidden AP costs can come from processing fees and other smaller details that may not be noticeable on the invoices right away. 

Other hidden payable costs can come from the human error of processing the wrong amount, charging the incorrect account, forgetting to apply discounts, or incurring late fees. All of this and more can be prevented with more advanced accounting services. 

How to Take Steps to Avoid These Hidden Costs

You can do several things right away to start minimizing accounting mistakes and mitigating the financial damage overall. The first step is to do a full-scope evaluation of your bookkeeping processes and take note of any errors or inefficient practices going on. It’s a good idea to speak with any and all individuals involved with the money-making (and spending) aspect of your business. This can help you quickly identify problem areas in your accounting workflow. 

You can reach out to certified accounting professionals who can offer an expert level of insight into your franchise’s overall financial health. You’ll be able to compare your processes to the industry average in order to determine whether an update of your accounting department is in order. 

The best way to get rid of the risk of mistakes and to stop your operations from accidentally leaking money is to try out the newest accounting technology. With automated bookkeeping systems, you will be able to see everyday practices that actually pay off. 

Find Your Trusted Accounting Solution Today 

No matter how far your books are backed up, how inaccurate your financial reports are, and how late your processed payments get sent out, we can help you get back on track. Indevia’s automated accounting services offer a full range of operational features that can help your accounting team handle the company’s money in the most efficient way. To learn more about what our teams can do for you, get in touch with one of our experts and schedule a personalized business call today. We offer a 100% satisfaction guarantee or a full refund. Contact us today to get started!

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