DLB Consulting, LLC makes sure you’re operating on a solid foundation by setting up or refining your accounting system, implementing proper accounting procedures, and training you and your staff to get the most from your accounting software.
Knowing that you can rely on your business’s financial reports will allow you to make decisions with confidence as you move forward.
It’s too easy to keep doing what we have been doing even when a better way exists. The key, though, is to always focus on ways to increase the likelihood that your business decisions are profitable. Successful people work on ways to put the odds of success in their favor. They are keenly focused on learning and growing so they continually get better at making money.
Building a solid business is a strategic investment, and you should not settle for less than exactly what you need to reach your business goals. On your search for the right solution, you need to make sure you have the facts straight about what to look for, and more importantly, what to look out for.
Systems and processes that provide a solid foundation are crucial to help your business succeed. By taking the time to prioritize, strategize and execute to the plan you’ll discover an improved bottom line.
Why Are Solid Accounting and Internal Systems Important?
They propel your business forward.
They provide specific information you need to identify gaps.
They streamline your existing processes.
They help you adapt and dominate in the ever-changing business environment.
They turn information into insights and equip your employees to make informed decisions.
Rule 1 – Building a proper foundation: System Design
When it comes to your business, the underpinnings of the system ultimately determine its effectiveness. Proper systems make the difference between merely operating from a collection of data and propelling your business forward with clear reports and meaningful analysis. Start by taking a good look at the structure of your current system. We can help you provide the basis for a system solution that grows with your business.
Rule 2 – Implementing the right system: Business Insights
The key is to set out with a well-designed, intelligent system — a system that can meet your needs today as well as evolve to meet your needs into the future. Without the right structure at the heart of your business, no amount of data manipulation or reporting can give you the insight necessary to keep your business moving in the right direction.
You can’t make sound decisions without good information, which starts with the information captured in your accounting records. This forms the structure that enables you to compare results year by year and budget by budget. A powerful system should offer multiple ways to segment information so that you can extract the insights you need.
Rule 3 – Ensuring good visibility: Ratios and Formula Indicators
Business owners rely on accurate insight into their business. They need to stay on top of cash flow, operating profit, and top-line revenue growth to make their business flourish. Too few business owners have a “compass” to guide them safely. You need clear insight, which requires full access to underlying data. You might or contrast financial or operational ratios. To do these things, you need a system that transforms data into operational insights by creating budgets, plans and forecasts for both financial and operating metrics and comparing them with actual results.
Rule 4 – Abiding by the rules: Accounting Standards and Multiple Books
Businesses must adhere to a set of US and international accounting standards that dictate how to compile and report information. Failure to properly apply or monitor these rules can make it difficult to qualify for loans, manage a business, and can even lead to employee fraud. American businesses are required to follow Generally Accepted Accounting Principles (GAAP), which are designed to ensure information is comparable across numerous industries. Bankers look to GAAP rules to ensure consistency, and accountants are bound to apply them when performing compilations, reviews, and audits. Regardless of the legal implications of failing to properly record transactions, it is difficult to run a business and make the best decisions when information is not accurately recorded. However, today’s businesses are subject to other standards that must be applied as well—tax compliance, managerial disciplines, or even international standards. How can you manage your business across these diverse reporting requirements? The key is to design internal systems that are proven to succeed.
Rule 5 – Managing employees: Internal Controls
Employees are vital to keeping any business moving forward. Businesses need to provide employees with access and insights necessary to do their job, while also providing strong internal controls. Unless you have a system that supports separation of duties through granular user rights, it can be an unstable situation. Employees should be able to perform their tasks and adequately network with one another to prevent duplication of effort — all while your business remains protected.
Rule 6 – Managing multi-location entity: Many Locations
Complications can arise when your business becomes a multi-location organization. Owners and managers need visibility across branches. Today’s complex entities need a system that supports multiple locations and their unique ownership structures — including partial ownership and holding companies… but it takes a powerful, well thought-out design to support a multi-location environment.
Rule 7 – Supporting clear communications: Access to Information
Business owners and employees need information at their fingertips. Individual department managers must work on their own goals while supporting overall company objectives. They need real-time reports without the hindrance of arbitrary cutoffs and the ability to quickly begin work in a new accounting period. Employees will clamor to be instantly informed about their progress towards incentive goals and bonuses. Financial managers must identify dangerous trends immediately. Today’s businesses need information that is accessible and readily available in the form of inquiries, customizable reports and dashboards.