Can you relax in the hammock, enjoy your favorite pod and still keep track of how things are going for the company live? For this to be possible, you must create the right conditions:
- Combine all financial processes into one system
- Make sure that payments, banking and financial systems are connected
- Choose systems that create digital substrates on automation
- Invest in systems that can “talk” to each other
1. Gather everything into one financial system
You do not want to spend valuable time in the holiday home logging into multiple systems or trying to find out if the numbers you see are correct, everything just has to match.
If everyone at the company works in the same system instead of a widespread system flora, the risk of human error decreases and it is easier to ensure that the numbers are correct. Today, there are different ways to solve it, either through more or less complete financial and business systems or through smart API integrations. Make sure everything is connected, otherwise there is always the risk that it simply will not be correct and updated.
2. Ensure that payments, banking and financial systems are interconnected
You sit back in the sun chair and look at the latest results report, but is it really true? Wouldn’t one of your bigger customers pay already in July?
If the result is to be truly correct, all forms of payments must be supported by automatic processes. You should not have to log into an internet bank or similar to find out if everything is included in the result. Otherwise, more work will be done to reconciliate and there is a risk of a difference between what happened at the bank and in the bookkeeping. Your bank and your financial system should simply sit together and be updated as frequently as possible. Of course, this also applies to matching customer and supplier invoices, salaries, expenses and the like.
3. Select systems that create digital substrates that are automatic
Can you relax and trust that the bookkeeping will be correct during the holidays? Can you easily see what actually happened? Peter is gone and Eva is home with a fever.
Many systems do not take into account or create digital “covers” for documents that must be posted. Instead, it is managed completely or partially separately and is influenced by the human factor. To be able to seriously reduce the administration, trust the numbers and follow them in the smallest detail, the system must be able to do the job. For example, when an invoice is sent or paid, the system must create digital documentation, insert it into an “electronic accounting binder” and create a PDF with the certificate name. If something goes wrong it is easy to follow and you can immediately see what has happened, even if you are sitting abroad or on a jetty in the archipelago. All you need is, for example, a tablet and connection.
4. Invest in systems that can “talk” directly to each other
When everything feels calm and you just started to relax, it strikes you that something is wrong, why didn’t the numbers hang together when you checked the latest report? Was something missing?
Today, there are a plethora of services that talk about digitization, automation and real-time updating. But in the end, the numbers only get as updated as the data entered. For example, it does not help to have a real-time updated BI or financial system if a person has to retrieve data from multiple systems and then upload or, in the worst case, manually write and enter data in another. Then you really only have nice digital systems but the profit with the automation and the real-time update is not lost. This also applies to connections with the bank. By making sure that the systems you use can be integrated against each other via so-called APIs, you have a basis for building the processes required to really control how things are going for the company anytime and anywhere.