Many Canadian companies still manage their accounting through Excel spreadsheets, physical books or accounting packages, without realizing the technological lag they are experiencing, or serious problems such as the probability of having incorrect inventory data, lack of information on costs real production (and updated), payments to suppliers, accounts receivable, among others that put the profitability and cash flow of the company at risk.
Program management Canada can help address the problems of the accounting area through the use of an ERP system such as SAP Business One, reducing response times by coordinating processes and operations between departments so that their transversality works. The most common problems faced by this department are:
Accounts payable are the main cause of decreased cash flow in companies, and one of the problems of not having a program management Canada is the lack of follow-up of clients and their payment status.
By having management software you can:
The billing module allows accounting department employees to follow up on generated and received invoices, make sure they have been validated, or act quickly if there is an error that is delaying payments. Likewise, payments to suppliers can be monitored, avoiding interest or loss of profits due to not making deposits on time.
Companies that do not have management software tend to have fiscal gaps or discrepancies as they have to incorporate invoices, tickets and other documentation to determine taxes, financial statements, fiscal year or month closings; Instead, having a management software can generate reports, income statement and cash flow to know the real numbers of the company, comply with tax payments and increase profitability.
Tax processes are considerably simplified to carry out monthly or annual year-end closings, since all the information is available in a single platform, so only the results are calculated based on what the auditor or manager is looking for financial company, for example: taxes paid, interest, depreciation, investments, withholdings or payroll payments to employees.
Many companies record expenses for the acquisition of furniture or materials, supplier payments or salaries without having performed budget line analysis, project allocation or review by department or line of business. Hence, there comes a time when cash flow control is lost and profitability can be put at risk.
Program management Canada with management software must include a budget control module to avoid situations that put the company’s finances at risk, and make strategic decisions, previously analyzed and beneficial in the medium term.
From call reminders to scheduling automated emails for customers who are behind on their payments, the use of management software helps increase cash flow by up to 20% by automating routine tasks and simplifying processes. so that the accounting department saves time invested in routine activities.
The accounting department must be integrated with practically all operational and administrative tasks, since the delay in registering an operation can affect the performance of another process. Therefore, a program management Canada must ensure that departments share data in real time, since when using a management system, collaboration and communication are key to success.