Financial organizations highly depend upon accuracy in financial reporting and they ensure that reports are on time, this is equally important. Individual financial business and market conditions change on a daily basis. That’s why stakeholders require access to fully updated and verified financial reports by acquiring online accounting services that can support their decisions. According to business research, the AI accounting software market is expected to reach $868 Billion at a 9.1% CAGR, by 2022.

Do Financial Organizations need Online Accounting Software?

AI accounting software helps organizations in managing their tasks more effectively. Despite this, managing financial records manually doesn’t allow business owners to achieve their desired results. From basic billing and invoicing to project management and tax calculations, online accounting software is an essential tool. It also helps in reconciling bank accounts and generating insightful reports. Following are the best practices of financial reports that ensure even the most engaged entrepreneurs have all the accurate information, they require to make well-informed decisions.

1) Streamline by Identifying Critical Information

After the end of the period, carefully choose the documents that are needed to produce data-driven decisions. Prioritize them accordingly and then streamline the deliverables consisting of the essential information that the company actually needs. It’s the owner or accountant’s responsibility to find out what they actually need.

Do they really want that topline version that involves 10 rows or a line-item P&L with 100 rows?

2) Leverage Collaborative Online Accounting Software

Accurate and timely financial reports are a way to minimize business expenses. Leveraging existing online accounting software that has the potential to automate tasks like inventory management or tracking receipts can ease SMB operations. Many AI accounting platforms like RecordMe can also be synchronized with advanced tools that centralize all financial information. Not only this, but it also makes timely payments and quick financial reports that were not easy before. That’s why 58% of businesses use accounting automation to satisfy client needs.

3) Ensure Financial Reports are Modified According to Company and Industry

Company AI accounting-based financial reports should be a tool that supports the CEO or CFO to make decisions accordingly or run the business. Reports should be accurate, reliable, and timely created between 10 to 15 days before the end month.

Not only this, it should be justified according to the company stage and future goals. Furthermore, these AI accounting-based reports should act like a tool that can compare your business with the others in the industry, providing a report on a Key Performance Indicator (KPI) and can set benchmarks.

4) Reconcile Financial Transactions All Over the Month

Out of the best ways, one is to send timely financial reports by reconciling financial transactions throughout the month. That can happen if the company acquires online accounting services or RecordMe. By utilizing these services, the company can track and record daily basis operational transactions. Also, reconciling general and subsidiary ledgers per week saves a significant amount of time at the month’s end. That’s why the CEO or CFO should acquire online accounting services to simplify operations.

5) Implement and Schedule Delivery with the Help of Online Accounting Software

The CFO should build a detailed schedule to guide everyone in the company about what they will deliver and its completion date. This process should be done before the period ends through online accounting software like RecordMe. Financial schedules, entries, and reconciliations should be completed before the period ends which also extends company resources. Organizations and preparation work are important so reviewers shouldn’t wait until the period ends to complete the review.

6) Optimize Workflows Through Accounting Automation for Flexibility

The past few years especially after covid-19 taught that accurate and reliable financial data is needed to make instant decisions in any business. Many financial companies acquire accounting automation as they know that financial reports are a primary need for broad reviews or tax purposes. That’s why they don’t see financial reports only as a tool for decision-making but as a necessity like blood in the body. Moreover, online accounting systems should support accuracy and flexibility, and let’s suppose they don’t, then it’s high time for new strategies and update advanced technology like RecordMe.

7) Set up Automated Financial Reports using Accounting Automation

Utilize online accounting services to access accounting data and automate financial reports. Instead of trying to scrape up everything that is needed to prepare a financial report that is error-prone and time-intensive. Just try using AI accounting with direct data access that saves the company and employees money or time as it automates tasks. Just set up automated financial reports according to CFO instructions and let the software complete the heavy lifting on the employee’s behalf.

8) Pull Financial Data in Real Time with Online Accounting Software

The crucial part of financial reports is to leverage APIs and integrations that are by default built into AI accounting software to pull real-time data. This step is essential and has to update quickly for customer-related pieces. The manual bookkeeping cycle has been reduced significantly in the past few years as demand for online accounting software rises specifically in the finance industry. This AI accounting software automatically forces companies to remain competitive and relevant in the marketplace.

9) Set Up an Event Calendar

At last, scheduling tasks and activities with AI accounting software with an event calendar is paramount. An uncomplicated schedule becomes an essential management tool.

Get buy-in from the audit committee, CFO, Senior officers, or auditors who agree to the timeline or clarify the project parameters and work scope to prepare financial statements. It helps in developing better accountability and team alignment.

How RecordME Aligns Financial Data with Business Goals?

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