Data analysis allow to you to ask questions or to find original ideas, identify new growth opportunities, improve productivity and decision making. Accounting information is particularly valuable to understand. If you have the image of a needle in a haystack, surely you don't use the right tools. Because an adapted system allows you to use the data efficiently to take relevant decisions without wasting time.
We remember a boss who boasted with a smile of making decisions on instinct, without ever putting his nose into his accounting data. Three years later, after many reminders of unpaid loans and the recruitment of a highly motivated employee, the financial difficulties persisted. The new employee therefore dug and analyzed Excel spreadsheet on Excel spreadsheet to try to understand how the company could be in this situation with all the contracts it was getting. Result: poor management based primarily on excessive spending where professional and personal mingled ... Without additional advice from a fiduciary who was only mandated for the annual balance sheet and realized that from the start of his business, for the sake of saving time and money, the entrepreneur made two choices, it pays today. First, working with an accountant who doesn't charge a lot but who doesn't follow up, doesn't audit, and doesn't give advice. And secondly, not to be interested in its accounting data.
Certainly if you have to look for informations and then add them in an Excel spreadsheet to analyze and understand, this will not be the priority of the overworked entrepreneur. But if you mandate a fiduciary who has been able to develop their processes with the right technology, in addition to optimal support and follow-up of your accounts, you will benefit from a platform updated in real time that will present you the accounting data essential to the good management of a company. As does IODD we provide to our customers. Never forget that your accounting information are the basis of your business and you must be able to react according to its evolution. Being able to analyze the main financial movements of your organization at a glance is essential to avoid the consequences of an entirely subjective "guessing".
Your cash is your business asset. Business leaders should first use accounting data to judge their financial health and plan financing and other strategies in the short or long term. For example, if you plan to invest in equipment worth $ 120,000, you can check your funding capacity. Many business owners use ratios to analyze their financial status. Based on a significant relationship between two quantities, financial, activity, profitability or cash flow ratios allow a relevant view of your situation. In IODD, you can directly access some of the data that will guide you in this regard, such as the open job posting table that shows the risk associated with the money you owe each of your clients.
Overview of open positions in IODD
Like any good manager, have you estimated your income and expenses? So the data from your accounting are essential to ensure that the company is on the path to your forecast, you can compare the figures from your budget to actual. For example, if you find that the travel expenses of the salespersons are starting to exceed the projections, you will be able to do research to understand the reason for these excessive charges and make decisions. If the actual reports show higher management costs than the budget reports, then the contractor may consider renegotiating terms, prices or even changing suppliers.
By following who owes you money, how many and for how long, you will be able to react according to the context. A detailed accounting report allowing you to identify the slowest customers to pay, will prevent you from possibly losing revenue by following them up close. Money is king, especially when one is a small business, the faster the customer pays, the better the company can meet its financial obligations. As you will understand, it is difficult to conceive of good organization management without the data that make it possible to do so. A key success factor is the availability of relevant accounting information at the right time, hence the importance of being able to work with this data in real time. This allows companies to know what decisions need to be made, when to take action, and how this will affect financial results and operational performance.