Accounting systems do not belong to the category of processes that need to be replaced or changed very often. With a business growing in complexity or size, continuously, we are likely to reach a point where general accounting processes start draining your productivity. This is where global accounting comes to play to help you analyze the growing range of operating and financial data. This blog covers all the aspects of global accounting that sets it apart from traditional accounting processes.
You know what? To find a better way to handle accounting for your business, you’ll need to install a structure that can deliver all the essential features of a modern accounting system. The global accounting system allows you to streamline and automate core financial management functions.
Core Financial Management Functions
Accounts Receivable (Order to Cash)
This deals with the balance of money due to a firm for products or services delivered or used but not yet paid for by customers. It is listed as any amount of money owed by customers on the balance sheet as a current asset.
Accounts Payable (Procure to Payment)
These are amounts that have not yet been paid for by vendors or suppliers for goods or services received. The total amount owed to vendors is shown on the company’s balance sheet as the accounts payable balance.
Financial Close
The financial close process includes reducing and reviewing account balances before the accounting cycle closes. It refers to the point where the PPP contract has been signed at the end of the procurement phase.
Time and Expense Capture
Are you accurately capturing all the time and expenses devoted to individual engagements and projects? If not, then it’s time that you think about maximizing revenue and capture expense information using real-time visibility offered by global accounting.
Fund Accounting
This is typically employed by non-profit entities to track the amount of cash assigned for different purposes and utilize it. It is more than just about keeping note of whether an entity has generated a profit.
Project Accounting
It focuses on the financial transactions related to managing a project including revenue, costs, and billing. This method can be used to integrate key financial tasks on a project-by-project basis and report their progress or success to the management.
Revenue Recognition and Management
Revenue Recognition Management is a generally accepted accounting principle (GAAP) that refers to the percentage-of-completion method, which managers often bill clients. It offers guidance to business entities on how to recognize their revenue to provide transparent and accurate solutions to issues related to modern-day accounting.
It is obviously very difficult to be able to fuel your growth by simply automating the previously set up accounting systems. For a list of essential courses based on the modern accounting system, log on to our website now.
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