PROBLEMS WHICH ARE COMMONLY FACED OF MEDIUM AND LARGE COMPANIES

Accounting in the company becomes absolutely transparent, it is almost impossible to hide the abuse of managers.

When implementing a centralized management system for a holding, the financial services of enterprises completely lose their independence. Shareholders have full access to this database of financial transaction.

In the online mode, shareholders not only see all incoming and outgoing payments, but can also prohibit a banking transaction that seems suspicious to them.

This can be done even from a smartphone application.

Each manager who controls bank accounts sets up a convenient notification system for upcoming money transfers. Notifications can come in the form of SMS, messages to instant messengers (WhatsApp, Viber), e-mail.

For example, utility and tax payments do not require mandatory approval from shareholders, but their execution must be approved by the financial director. But upon payment, shareholders receive a notice of the conducted banking operation.

If the payment is sent to a doubtful counterparty, or exceeds a certain amount, it will be technically impossible to make it without the approval of the shareholders.

The automatic system blocks the banking program (Bank-Client), preventing it from completing the transaction.

Also, shareholders will be able to control the movement of cash through the cashier of the enterprise.

For example, if cash was withdrawn from a current account, it can be checked whether they were received at the company’s cash office or were “lost” on the way from the bank.

This is a necessary and very convenient tool for financial planning.

The program will calculate the schedule and amount of payments, which will allow you to avoid gaps in payment instruments and cash gaps.

When building a model, the program takes into account many different factors, which minimizes errors in forecasting. You can simulate a hypothetical situation by setting the parameters of the proposed contracts, payment delays, non-payment.

Financial planning greatly facilitates the work of accounting and financial services. There is no need to build and constantly adjust the data in bulky Excel-tables. Manual maintenance of such records always leads to random errors. Someone from the staff may incorrectly transfer the data to the table or accidentally delete it. It is also likely that intentional distortion of the data may take place.

Often, managers rob companies by entering into initially unprofitable or fictitious contracts. The automated system provides the ability to control all contracts.

For each contract, a reconciliation route is developed, on which lawyers, financiers, and the security service comprehensively study it. The possibility of concluding contracts for kickbacks by managers is reduced to a minimum.

Through the coordination system both profitable and expenditure contracts can be passed, since abuses occur in both cases.

Costs cannot be optimized without a transparent cost structure. Even with trustworthy company executives, they often overpay due to lack of organization.

And if top managers deliberately bring the company to bankruptcy, the cost structure is deliberately confused to hide its scams.

The automated system allows you to group costs into an easy-to-analyze report form, on the basis of which you can optimize and detect abuse.

To make management decisions, it is necessary to conduct analytics in many aspects:

• what revenues each contract brings and what is the cost of services rendered;
  
• how profitable is to keep any equipment or is it more profitable to rent it for certain works;
  
• Does the cost of any project pay off?
  
• and much more.

There are many such parameters and all of them are necessary for making right decisions.

Automated system allows you to quickly and accurately collect the necessary information. At the same time, the human factor is excluded when data is lost when transferring from one Excel table to another.

Even trustworthy employees are not insured against such mistakes. As a rule, when maintaining such multifactor accounting in Excel spreadsheets, confusion always arises.

When there is no automated system, companies keep budget and management accounting in Excel spreadsheets. Contracts are accounted for in the same way. These data are usually scattered on computers of many employees from different departments.

Often, accounting is duplicated, there is confusion where to look for what data and whom to ask for what.

Serious errors creep into the tables and it is not always possible to determine which of the employees made them. Usually, no one confesses to his mistakes, putting the blame on his colleagues.

When recorded in Excel, important commercial and financial information can easily and with impunity “merge” with competitors and other interested parties.

An automated system reduces these risks.

First, each employee has access to only a small part of the data. Only shareholders and trusted directors will be able to see the whole picture.

Secondly, the system can establish a system of approval (or ban) on the export and printing of particularly important documents. This is true if the employee is dealing with closed commercial information that should not “leak” from the company.

Such measures do not guarantee the “discharge” of information but minimize the risk. And it is almost always possible to determine who is to blame for the leak. The system records who and when opened these documents and what was corrected.

Automation, and with its optimization, will inevitably lead to the decrease of employees.

Despite serious initial investments, in the long term, such modernization entails budget savings and a significant improvement in the quality of accounting.

This is especially necessary when unscrupulous managers and financiers are robbing a company or even are leading it to bankruptcy. Unfortunately, we often have to deal with such behavior of managers.

Usually the chief accountant is aware of financial abuses and covers them. Therefore, all attempts by shareholders to restore order to the company will be sabotaged by financial departments.

Only the introduction of an automated financial and management accounting system will help minimize the impact of pests. And even get rid of them.