Relevant global periodic information in your company. A success story
Context: The need for clear and uniform financial information.
Not only when the company is in a growth phase, but also in times of change, adaptation, or transition. The organization and presentation of financial and management information can develop spontaneously without defined criteria.
This is what happened to the company in question. In a few months it went from operating with a single client (its own parent company) to seeking a position in the market independently. However, at the beginning of this expansion process, after we had the first contact , we encountered several structural problems in the management of financial and accounting information.
On the one hand, an unstructured chart of accounts did not allow us to have a clear and detailed view of the progress of the business. In addition, there were no uniform accounting criteria; in fact, the recording of transactions depended on each user.
There was also excessive use of bridge accounts, which made it difficult to know the real balances of the final accounts for each transaction. Computerized management and accounting tools were underdeveloped, so most of the reports were obtained on demand and manually. There was even a lack of historical information, which made it difficult to make comparisons or identify trends.
In view of this situation, the need to establish as an initial step a uniform criterion for accounting records became evident. Subsequently, we would be able to generate monthly information from an accounting, financial, statistical, budgetary and management control perspective.
Objective: Unify criteria and create reliable reporting
Our main objective was twofold:
- To define uniform accounting criteria to correctly record all operations and enable reliable financial analysis.
- To provide the company with periodic reports that would help decision making based on clear and updated data.
This involved a radical transformation in the way the company managed its financial information. Precisely, moving from a chaotic and manual environment to an organized and methodical system.
Actions implemented.
To achieve these objectives, a series of key actions were implemented:
Elaboration of accounting policies and procedures. We defined clear rules for the accounting recording of each type of operation. We established validation processes to ensure consistency in the accounting of transactions.
Review and adaptation of the chart of accounts. We reorganized the chart of accounts to more accurately reflect the specific needs required for the company’s management. We rationalized and merged redundant accounts.
Elimination of bridge accounts. We integrated and debugged existing balances to first reduce and then eliminate reliance on bridge accounts. We established a system of follow-up reviews, preventing their reappearance.
Definition and creation of reporting models. We designed standardized formats for periodic accounting, financial and management information. We prepared monthly reports with key indicators and analysis comments.
Automation and optimization of information collection. We established more efficient data collection processes. We progressively incorporated new relevant documents in the monthly reports.
Challenges overcome.
The change was neither easy nor simple, as we faced several obstacles.
– Lack of accounting training in the team. We developed a training program to ensure that employees understood the new procedures.
– Lack of a culture of written procedures. We implemented accounting policy manuals and ensured their correct application.
– Accumulated balances without justification. We conducted a meticulous purge and implemented rigorous controls to document every movement.
– Manual reporting. We optimized processes to reduce the time required to generate reports.
– Lack of uniform criteria for records. We defined strict rules to ensure consistency.
Limitations considered.
During the process, we had to work considering certain restrictions.
– Rigidity of the accounting software, which limited some automations.
– Tight deadlines for the implementation of all changes.
– Compliance with national and international accounting regulations.
– Lack of integration between the technological tools used.
– Lack of previous experience in periodic reporting, which required a learning curve.
– Delays in the implementation of the management tool, which forced us to use temporary solutions.
Results obtained.
Thanks to this transformation, we achieved highly positive results:
– Greater clarity and uniformity in the recording of operations.
– Simplification of accounting processes.
– Ease in subsequent audits and internal reviews.
– Establishment of deadlines for monthly reporting (within the first 7-10 days of the following month).
– Incorporation of a report with key indicators and monthly analysis.
– Availability of reliable data for strategic decision making.
Demonstrated key competencies.
Throughout this process, key skills were put into practice:
– Organization and standardization of procedures.
– Prioritization of critical tasks.
– Practical and useful approach to accounting.
– Methodical character and analytical skills.
– Adaptability to the specific needs of the evolving business.
Conclusion: A lasting change in information management
Thanks to this effort, we were able to establish a dependable and homogeneous financial and accounting information system. This change not only improved decision-making but also laid the groundwork for orderly and sustainable growth in the immediate future. The company was able to count on accurate and relevant data to project its development with security and efficiency. What are you waiting for to create and update relevant global periodic information in your company?
