Finance Team Overhaul – From Manual to Streamlined
Background
A family run business had a small finance team of one full time and two part time members of staff. Their newly appointed operations manager soon found that processes were being performed manually instead of using the systems available.
The team structure and the processes needed a complete review and overhaul to place relevant skills in roles and use systems effectively to remove the burden of manual processing.
Our Approach
We needed to get a really good idea of what was going on following an initial meeting with management. One to one meetings were conducted with the team enabling us to map the key processes of purchases, sales, payroll, month end accounting & bank reconciliations, costing and VAT.
These meetings took place over a couple of weeks, and various findings were made. There was confirmation that tasks included in processing purchases, sales, bank reconciliations and month end accounting that could be done through the accounting system were being done in Excel. It appeared there was a complete lack of trust in the system from the accounts manager hence still processing in Excel. However, this meant that the accounting system was completely unreliable as areporting and decision-making tool. The systems were fit for purpose but not being used to theirpotential.
Three key areas of improvement were identified:
1. Remove duplication of entry.
2. Automate actions where possible e.g. bank feeds.
3. Use the accounting system for all processing.
Actions Taken
During this process, but not because of, the accounts manager handed in their notice. This changed our approach and gave us an opportunity to offer coaching and support to non-finance staff who were going to step in and cover the accounts manager’s tasks.
Once we’d explained how the accounts system can perform daily tasks with ease, this was welcomed and adopted quickly. Firstly, the accounts system became the only method of recording accounts transactions. Staff were given instruction and an overview of the reasons for why they were doing what they were doing.
From reviving the defunct quotation process in sales to setting up bank feeds for reconciliations – it was all entered into the system. Most of the manual processes were able to be mothballed thus removing duplication of entry.
Secondly, to get the accounting system up to date, a data review and cleanse was performed and a clean edge for reporting was put in place.
Thirdly, reusable templates for anything that couldn’t be done in the system, (e.g. staff timesheets),were set up and staff trained on how to use them.
Outcomes
Seeing a team using an accounting system in the manner in which it’s been created for is a joy for us accounts types. From a team that was completely disjointed, relying on creaking spreadsheets and frustrated with manual processes to a finance department that has all the answers right there in one system with data that management can use for decision making.
And these staff didn’t have much accounts experience – just a willingness to learn and make things better. Follow up visits became shorter every time as their confidence grew and eventually, they didn’t need us anymore – sounds daft but that’s our goal! Our work there was done.
Why Porterdale were perfect to help
This client required a consultant with actual experience in running a finance department to see how they could adopt best practices in transacting and financial reporting without needing to bring in a team of expensive qualified staff.
We could take our knowledge and apply it to this business and coach non-finance employees to both perform day to day tasks and produce reports that can be used for decision making.
If you’re in a similar situation please contact us.
Words by Lindsey Owen
Swimming header photo by Richard R. Schünemann