Take Stock of Where You Are Mid-Year

It’s hard to believe we’re halfway through 2019! As busy professionals, it’s easy to get caught up in the day-to-day needs of your practice. However, it’s a great time to perform a mid-year check-up of your accounting operations, to ensure they’re supporting the overall success of your practice.

Consider your answers to the following important accounting questions so that you can identify any trouble spots early and make the necessary mid-course corrections. This will help you avoid costly fixes over the long-run and make sure you’re still on the right path to success:

Take Stock of Where You Are Mid-Year

It’s hard to believe we’re halfway through 2019! As busy professionals, it’s easy to get caught up in the day-to-day needs of your practice. However, it’s a great time to perform a mid-year check-up of your accounting operations, to ensure they’re supporting the overall success of your practice.

Consider your answers to the following important accounting questions so that you can identify any trouble spots early and make the necessary mid-course corrections. This will help you avoid costly fixes over the long-run and make sure you’re still on the right path to success:

1. Are Your Bookkeeping Processes Up to Date?

If you or your staff are getting lost in mounds of paperwork or spending too much time on manual bookkeeping entries, and/or you’re still paying bills using paper checks, it’s likely that your bookkeeping and accounting processes are outdated and costing you valuable time and money. Invest the time to bring your back-office operations up to date through more automated and integrated systems. For more information, read my article: http://fluorescene.odcommunity.com/five-ways-get-rid-paperwork-hassles/.

2. Are You Closing the Books on a Regular and Timely Basis?

The main objective of the closing process is to ensure the completeness and accuracy of the financial reports you need to run your practice. The process includes properly recording all financial activity for the period and reconciling all accounts. Regardless of the size of your practice, it’s important to close your books on a regular basis, preferably monthly, so that you have an accurate and complete set of financial statements that reflect how your practice is doing.

If you’re uncertain about how to close the books, or you have a hard time closing them in a timely manner, it may be time to have a professional accountant provide guidance on how to build standard operating procedures (SOPs) to close the books effectively and efficiently. Read more about SOP’s at http://fluorescene.odcommunity.com/avoid-costly-mistakes-standardizing-accounting-processes/

3. Do You Have A Good Understanding Of Your Financial Position?

Even if you have someone else do your bookkeeping and generate financial statements, you need to understand your practice’s financial status and review reports regularly so that you can make informed business decisions. If you have a hard time understanding what your statements are telling you about the financial condition of your practice, it’s time to get help. Take the time to walk through your financial statements with your accountant and don’t be afraid to ask questions.

4. Is Your Accounting System Working for You?

As part of the check-up, assess how well your accounting system is meeting your needs. If your practice is experiencing rapid growth, make sure the current system is scalable and can grow with you. If it’s currently difficult to access real-time, accurate information about your financial activity in a secure and user-friendly way, it may be time to upgrade your current system.

5. Does Your Current Staffing Meet Your Accounting Needs?

If you find yourself spending too much time in the weeds of your day-to-day back-office operations and it’s taking you away from what matters most to your practice, then it’s time to delegate certain tasks to others. During your mid-year check-up, assess your staffing structure and determine whether it’s effectively meeting your growing needs. It may be time to hire outside experts to handle areas outside your core competencies. If you’re considering outsourcing your accounting, read http://fluorescene.odcommunity.com/outsourcing-accounting-next-step-successful-od-practice/ for more information.

Summary

Investing the time to step back and take stock of your bookkeeping and accounting operations is a prudent best practice for growing OD practices. Your mid-year check-up will help you assess how you’re doing and refine your practice in a cost-effective manner.

Questions?

If you have questions and/or would like help in any of the above areas, please reach out to me for a free initial consultation. I’ll be happy to talk with you about ways to improve your practice. Orin Schepps, Founder and CEO @consultanceaccounting  http://www.consultancellc.com