Timely & Accurate Costing Information

Aug 10, 2015

In my mind, it is quite reasonable to expect accurate and timely information from your controller, accountant, or bookkeeper. All too often the person fulfilling these roles believes such a request to be too much! Why do you think such a perception exists?

shutterstock_74627323Do they feel there is too much expected of them already and adding another objective would result in something else being put to the wayside? I believe most controllers think information should be accurate, but when discussing timeliness, the time frame is deemed unrealistic.

I think a well-organized financial manager can provide you with accurate and timely costing information. A two-week month close is  really out of the question, especially with advanced technology. Bank balance(s) should be reconciled daily so it does not become a large chore at month-end. This also prevents transactions being missed and offers you a daily view of where you stand. AP invoices should be entered when received and billings done at least weekly. There is no reason to leave things sit until month-end to input and reconcile. A continuous reconciliation should be done in order to confirm daily accuracy and timeliness.

If you are unable to receive the necessary financial information within three days of month-end, what is the delay? I recognize there may be some anomalies and  delays as not everyone pays their invoice on time. However, you can make sure you do your best to avoid these issues. Ask vendors to email you invoices, or if you a vendor who is consistently late you should be able to account for such.

The goal is to provide the decision makers with the most accurate information at any interval of the day. If you are able to anticipate a delay that may impact a decision, you may save your business time and money. Accurate reporting and timely decision making can drastically impact the future of your business. Take the time to evaluate your current system and ensure you have the right information at the right time to make positive decisions for your business.

Categories: Cost Accounting