Accounting system building services

The service of building a business accounting system helps to build a standard accounting system for a business, providing all necessary management information and helping to control the operation of the business.

EXPERTIS

Building a business accounting system

Understanding the need

“Selective Timely” It can be said that the top criteria of managers when making decisions, the work of business management is largely about making accurate decisions, that decision must be timely and selective. You cannot do this without a management information system.

As a small business grows, it should move from simple bookkeeping to more comprehensive accounting practices that help the company's strategic growth. Bookkeeping records your numbers, while bookkeeping helps you figure out what they mean. A well-organized accounting and financial system can help you understand what's going on at your company and give you the best way and time for you to grow your business.

Healthy businesses tend to grow, and business growth requires careful management with a close eye on the numbers. A good accounting system will provide accurate details and give you important information about whether your business can pay off the money you borrowed to scale and how long it will take. do that.

Accounting data can help you decide when is the right time to invest in expansion. If your sales are growing steadily and you're accumulating excess capital, your business may be well positioned to expand.

Without financial accounting, your business would be obscured in its day-to-day operations without ever understanding the business landscape. Accounting information explains how you made a profit or loss, providing clues as to where your company is succeeding and failing.

Expertis' financial and accounting system building service helps you get an accounting and financial management system that meets the following criteria:

  1. Accuracy
  2. Clarity
  3. Usable
  4. Relevance
  5. Flexible adaptability

methods of implementation

BUILDING THE MOST COMPREHENSIVE ACCOUNTING SYSTEM

Building a system of accounting - finance - management processes

Processes are the backbone of the system, activities related to the financial, accounting aspects of the business will be framed and controlled.

Consulting on completing software systems (Tools)

In order for the accounting system to operate, tools are indispensable, we advise on a software system that meets the management requirements of the business, not each individual tool.

Staff training and placement

Recruitment consulting, training to supplement the knowledge and accounting processes of the business, work arrangement, assessment and adjustment for the business.

Outstanding ability

When Expertis implemented BUILDING ACCOUNTING SYSTEM

Auditing the system after the accounting system has been built

Building accounting system on foreign software

REASON FOR CHOOSE SERVICE

building EXPERTIS' accounting system

Professional competence

More than 18 years of experience in settlement for thousands of businesses with diverse industries. The Board of Directors, the team of chief accountants have many years of experience in consulting both domestic and foreign businesses.

Service commitment

Expertis's accounting system building service focuses on service quality and building long-term relationships with customers. Cooperate with customers to find solutions to problems to ensure that the interests of customers come first.

Employee standards

The personnel in charge are always experienced professionals corresponding to the industry of the business. They have the ability to identify, measure and help you control the risks to your business.

Standard results

All accounting records of customers will be internally audited every 6 months / 1 time by Expertis' independent audit department to ensure accurate results.

FAQ

Frequently asked questions

To set up an effective accounting system, you must design an operational plan, select the right accounting software, and train the users of the system.

You can change the system with pre-planned additions if your system is set up for your specific business needs. Your accounting system should provide you with quantity information. and the source from which your business earns and where and how much it costs.

Step 1: Make an activity plan suitable for your company's size, products and services

First, you must plan operations that are appropriate for your company's size, products, and services. Based on this plan table, make the concretization into the necessary accounting database. 

This plan needs clarity of details by consulting with the people in charge of bringing money to the company and those responsible for approving the company's expenditures. Determine the income approval limit. and expenses, income and expense categories require approval from management appropriate to the operating structure of the business.

For example, you must determine if income is classified by source, such as Company X and Company Y, by type of service or product, or by a specific service or product.

Step 2: Set up the workflow

Establish work procedures and rules for who can use the system and for what purposes.

In addition to the implementation process, you need to develop regular monitoring procedures to prevent problems and ensure data integrity.

Step 3: Select the appropriate accounting software

Choosing accounting software after trying different programs that suit your company's requirements, it should be easy to understand and use.

Some companies may require a consultant to design a system from scratch or modify an existing system. Most small businesses will be able to find an existing program from many available in the market.

Step 4: Recruit, assign and train personnel to participate in the accounting system

Identify who participates in the accounting system, the tasks, roles and rights of the participants.

Define management decentralization such as: who can perform data entry, who can check and who generates reports. 

Each individual has different knowledge and skills leading to different ways of working. The process helps the person performing the work know that in a business, they must perform the work steps, how and how to achieve the results? There will be no situation where the employee receives the boss's instructions without knowing what to do? Or the situation of doing it again and again but still not according to the boss's wishes.

For example: Administration - Human Resources Department has a recruitment process, HCNS staff will know what information must be included in the "List of candidates" for the Head of HR Department + Head of Department/Department to consider, Filter resumes, select qualified people to interview.

For work processes that need team work, the process helps members coordinate with each other in a consistent and correct order without having to wonder who does this? How?

For example, the purchasing process of the accounting department will help HCNS staff know and follow the correct procedures when purchasing assets for the Company, better coordinate with the accounting staff for payment.

The process also helps managers control the progress and quality of work done by employees

For example: Head of HCNS looks at the candidate evaluation sheet, with salary, allowance, start date of work, signed by relevant people, will know if HCNS staff drafted the contract for the employee is correct. or not?

Only built once, but from then on, the business will go up forever

Without a process, you will do the same thing over and over again in a way that can be inefficient and the mind is so lazy by nature that it refuses to recognize mistakes in everyday tasks.

When building a process, your business minimizes risks during operation because the tasks / tasks have been clearly defined and standardized in order. Quickly create new steps and breakthroughs thanks to the old tasks that have been thoroughly optimized and solved.

Building a dynamic working spirit, smooth operation, increased productivity, the company's working environment becomes more professional.

Liberate the leader

When someone else can replace the management doing something as good as they do it or even better, it is a joy because now the management can do a different job, confront a new challenges, there will be no more miserable hours solving daily problems, the little mistakes that cost them time will forever disappear.

There is a process where the leadership has transferred all the quintessence, experience, and treatment options to new people and then they will automatically work and the leadership will be free to do other work. more important.

The accounting system is a grid of numbers that provide feedback about your business. An accounting system is needed for external purposes, to keep track of information that you must include in tax reporting forms. An accounting system is needed for internal purposes, allowing you to assess whether your business model is cost-effective and identify factors that are succeeding or failing. For an accounting system to be said to work properly, it needs to provide useful information organized in a way that can be easily understood.

5 elements that a good accounting system must have

1. Accuracy

A good accounting system must be accurate as it is legally required for your company to report financial information to your knowledge. Accuracy is important for internal purposes: the better the information provided, the more effectively you can respond or respond.

Accuracy in accounting systems involves establishing protocols to ensure that all information is collected and recorded into the accounting system. For example, the process of collecting expenses may involve reviewing purchase invoices and bank statements or paying via credit card.

An inaccurate accounting system is an unreliable system that can lead to bad business decisions.

2. Clarity

A good accounting system presents information clearly, so you can find what you need when you need it, and you can easily understand the information the system tracks as a reflection of your business activities. How is your day.

You need to avoid ambiguity, now you need to add something else to explain the data you have, unless this is important data, you tend to ignore it, and it become a blind spot in your accounting system. Accidents usually happen in blind spots.

3. Being usable

You need to make a clear distinction between Data and Information.

What is data?What is information?

Data are raw, unorganized facts and details such as numbers, symbols, and descriptions of things.

In other words, the data does not carry any particular purpose and by itself has no meaning. Furthermore, data is measured in terms of bits and bytes – which are fundamental units of information in the context of computer storage and processing.

Information is data that has been processed, organized, and structured. It provides context to the data and enables decision making. 

For example, a customer's sales at a restaurant is data – this data becomes information when a business can determine the most popular or least popular dish.

The data entered into the accounting system should be linked together, thus creating easy to understand reports by collation and arrangement of the figures in the way required by external reporting regulations or reports. internal data you need with enough data depth to provide you with management information and enable you to make decisions.

You need to avoid having an accounting system that only collects raw data but doesn't provide the information needed for decision making. Low availability means data collection becomes wasteful.

4. Relevance

A good accounting system must provide really useful information. For example, if you own a shirt factory, your accounting system can provide useful information by keeping track of the amount of time and cost of materials needed to produce each shirt. Shirts.

In addition, the information in your accounting system must correspond to the fields on the tax form that you must file with the local tax authorities. These fields include total revenue, payroll expenses, and total expenses in deductible expense categories like rent and auto expenses.

You need to avoid organizing an accounting system that lacks relevance, as it will bring the risk of gaps between the types of information you disclose.

5. Flexible adaptability

Your business is a living entity, constantly adapting to opportunities and problems that arise. Your accounting system should reflect these ongoing changes by allowing you to conveniently add, remove, and move instead of having to rebuild from scratch to accommodate the changes.

In fact, it is often the case that businesses will try to use alternative and tolerance measures, although this reduces management efficiency due to increased processing time and increased data risk. Until the costs incurred and the processing time become too great for the benefits of the current accounting system, you are forced to make the decision to replace the current accounting system with a new one. more compatible. This causes a series of major problems such as: Disruption, personnel not used to change, change costs are usually high.

Without an accountant, your business would be obscured in its day-to-day operations without ever understanding the business landscape. Accounting information explains how you made a profit or loss, providing clues as to where your company is succeeding and failing.

It also gives you the digital tools to collect amounts owed to you by your customers and pay your financial obligations to employees, tax authorities and suppliers.

These are the things that the accounting department in a business takes care of

1. Ensure business cash flow of the business

Your accounting department ensures that you have enough cash to operate by tracking and reminding customers of how much they owe and when payments are due. It also keeps track of the payments you owe to vendors, service providers, and other vendors and keeps these payments up to date.

The accounting department oversees these payments to make sure there is enough money in your account from customer payments for your business to pay its bills.

2. Ensure cash flow for salary

Your employees keep your business running, and you have a moral, legal, and financial obligation to pay them fairly and on time. Your accounting department calculates your gross pay as well as withholding income tax, social insurance, health insurance, unemployment insurance, and other contributions.

Payroll accounting also involves tracking tax deductions and total payroll expenses over time, allowing you to assess whether payroll costs are a good fit for your industry or if you need them. evaluate effectiveness or not.

3. Taxes

Your business must periodically pay value-added tax, corporate income tax, and personal income tax to the local tax office. Your accounting department is responsible for gathering and organizing the information needed to fill out these tax forms, including payroll information, sales figures, and operating expenses to calculate net income. (taxable profit).

Accountants keep track of your tax obligations over time and make sure your business has set aside enough to pay its obligations.

4. Provide the basis for business strategy formulation

The numbers your accounting department put together can provide insight into which aspects of your business are most profitable and where operating costs are too high. This information can help you decide whether to focus on a particular business, such as wholesale or retail, or it can motivate you to experiment with new approaches, such as like introducing new products that expand your strengths.

Accounting also tells you whether your cash flow is sufficient to make the changes you're planning.

5. Provide business scalability (M&A)

A good accounting system provides reliable financial information to the shareholders of the business, it shows the existing figures on the revenue, profit, assets and business expansion.

The accounting system provides important parameters for investment decisions such as: Return on share, return on sales, return on invested capital, return on investment assets...

Accounting provides you with a “certificate” of the business situation of your business and opens you up to many opportunities for expansion and cooperation. 

These are the reasons that accounting information is closely related to business decisions

1. Maximum profit

Your business doesn't make the same amount of money on every product or service you sell. Some products have lower margins but enough sales volume or customer appeal to justify this margin reduction.

Product mix is ​​the careful balance of products that make up what you offer to your customer base. Successful product mix decisions depend on detailed accounting information about the cost of selling each product and the amount of revenue that item generates.

The faster you rotate your inventory, the more money your business will make. If it's taking too long to turn inventory, consider holding off on extending the time owed to the seller or paying more attention to which items sell fastest.

2. Invest in human resources

Detailed and accurate payroll information is relevant to staffing decisions as it tells you if your company can afford to add staff if you feel a shortage. To ensure that the products and services provided to customers meet the standards.

If your payroll accounting shows that your payroll costs make up an unsustainably high percentage of your sales revenue, a personnel performance review and a reassessment of the payroll system will be helpful. makes more sense than hiring more employees.

Wage/revenue ratios vary across businesses, but most industries aim for payroll costs of 15 to 35 percent of gross revenue. Service-based businesses that incur few costs other than payroll can sometimes maintain payroll costs up to 50%.

If your payroll costs are more than 35% and your business is unprofitable, your accounting data can point you in the direction of business decisions like layoffs or if you have to perform labor productivity assessments.

3. Optimizing cash flow

The amount of money your company has on hand at any given time is strongly correlated with your daily revenue and expenses. You may have sold inventory and not yet received payment, purchased inventory that you have not paid for, or borrowed money that you will have to pay back in the future.

Cash flow is the process of managing the funds your business has available and allocating them in your favor. Accounting is relevant to cash flow decisions because it tells you how much money you have right now and how much you are likely to have in the near future.

The information in your cash flow forecast can help you determine the most efficient use of cash flow, when you will need to borrow money, and when you will be able to pay it back, allowing you to make informed decisions. transparency and avoid unnecessary financial charges.

4. Decision on expansion and investment orientation

Healthy businesses tend to grow, and business growth requires careful management with a close eye on the numbers. A good accounting system will provide accurate details and give you important information about whether your business can pay off the money you borrowed to scale and how long it will take. do that.

If your business seems ready to move to a larger facility or ramp up production, your accounting system will let you know if you have enough sales to do so and if so. no, how much more do you need in daily sales revenue.

Accounting data can help you decide when is the right time to invest in expansion. If your sales are growing steadily and you're accumulating excess capital, your business may be well positioned to expand.

Investing in facilities and infrastructure can allow your business to be more efficient and profitable. But this is very dependent on an assessment of your cash flow situation that will let you know when you can afford to make these changes.

These are the roles of management information systems in enterprise decision making

Quick access to information

Managers need quick access to information to make decisions on strategic, financial, marketing, and operational issues. Companies collect vast amounts of information, including customer profiles, sales data, market research, financial records, production and inventory data, and human resource records. However, much of that information is kept in separate departmental databases, making it difficult for decision makers to access the data quickly.

Management information systems simplify and speed up information retrieval by storing data in a central location accessible over the network. The result is faster and more accurate decisions.

“Selective Timely” It can be said that the top criteria of managers when making decisions, the work of business management is largely about making accurate decisions, that decision must be timely and selective. You cannot do this without a management information system.

Decisions based on the latest information

A management information system gathers data from inside and outside the organization. By establishing a network that links a central database with retailers, distributors and members of the supply chain, companies can collect sales and production data on a daily basis or more often and make decisions based on the latest information.

Make it possible for departments to work together

In situations where decision making involves departments, groups as well as individuals, management information systems make it easier for teams to make collaborative decisions. For example, in a project team, the management information system allows all members to access the same essential data, even when they are working in different locations.

Interpret results effectively

Management information systems help decision makers to make sense of their decisions. The system collates raw data into reports in a format that allows decision makers to quickly identify patterns and trends where raw data would not be obvious.

Decision makers can also use management information systems to understand the potential impact of change. For example, a sales manager can make predictions about the effect of a price change on sales by running simulations in the system and asking some “what if price” questions. .

Presentable and persuasive

The reporting tools in management information systems allow decision makers to tailor reports to the information needs of other parties. If a decision requires the approval of a senior executive, the decision maker can create a brief executive summary for review. If a manager wants to share the report's detailed findings with colleagues, they can create a full report and provide different levels of additional data.

A decision of a decision maker has the support of the company's team or not largely due to the persuasiveness of that decision, the persuasiveness of the decision cannot be explained in words but must be expressed through information. Numbers are presented in a clear, understandable way to accurately describe the information the decision maker wants to convey. This is decided by the enterprise's Management Information System.

We specialize in providing services: building an accounting system, building a business accounting system, building a management accounting system, setting up an accounting system, building an accounting process. Please contact us for details https://expertis.vn/

Do you need advice?

You want to relieve all the burden of accounting work and increase the financial efficiency of your business? You will get the most suitable solution as soon as you leave a consultation request with us!