Terry Rodoni, Consultant. Decades of background in local and national Accounting Practices. On RSM's executive committee for many years put his view on the importance of Practice Performance analysis to support constantly working ON your business to improve it.
This is his view on the topic.
'Practice performance analysis and reporting is a very manual exercise if you are using legacy systems like MYOB's AE/AO Practice Management system.
Professional and admin support staff spend many hours or even weeks in larger practices on such an exercise.
The task is to gather the data, analyse it, and collate and cross-check the results. Then to produce and distribute a report or 'Board Pack'.
It involves data from paper-based legacy systems. Often this means non-productive time from a senior staff member keying data from paper reports into spreadsheets. The exported data requires manual manipulation from multiple sources to get the necessary comparative results, every single time.
In the case of MYOB, the AE Practice Management system has a lot of financial data spread over several different tabs and menus; and requires additional steps to view financial statements using the Client Accounting Module. Financial statement data is commonly prepared in MYOB AccountRight (ARL) or another accounting and financial system used by the practice.
In short, all this takes many hours of professional staff time completing repetitive tasks. The manual labour component of this exercise should be unnecessary in the age of cloud computing. Lost time and productivity is a true cost for many practices.
Another issue with the use of spreadsheets is the above scenario is that they provide an out of date and static snapshot. To answer questions, currently, will require professional time spent on more spreadsheets, and all the time, the data is getting older.
Progressive Practices want their data to be up-to-date ‘real-time’ to the previous day's close of business and to be in one place for 'a single point of truth'. That’s the required visibility level to be proactive about the business today!
The analysis tools need to be 'embedded' in the analysis and reporting system designed for business users, i.e. able to be used by non-technical staff.
The result of the analysis should be available on-demand anywhere, anytime 'at the press of a button'. And it must be shareable via tools such as Zoom running in an Internet browser or as a Mobile App. The recent Work-from-Home developments demand this.
Revenue, Productivity, and Performance against Budget are significant issues in Practices. Professional and Administrative Salaries are the largest expense to any accounting practice.
Debtor Days, Work in Progress, Write-offs, and Lockup; that's what keeps Partners awake at night!
Until Cerebiz, there has been limited automated 'off the shelf' way to analyse, monitor and share these figures on-demand. Practices need this level of automation to produce information on time and at a realistic cost.
As a business owner, you should be able to access reports wherever you are at any time, including on your mobile device. It's more like continually 'working ON the business' to improve performance.
Managers and owners need automated processes and the right tools, like Dashboards with KPIs set by you and Alerts using your own real-time data. They need to be able to instantly Drill Down from top-level right down into underlying detail to find the cause of variance(s).
Automated processes and workflows provided by Cerebiz are the economical answer to improving your accounting practice. Alerts on issues to investigate, and continuous proactive team coaching to improve business insights and advice to both internal and external clients are vital. These provide high-value to both Clients and your Practice.
The rise of cloud computing has shown that automation and process benefits greatly exceed the monthly subscription cost of the right software. The time savings for you and your team can then immediately be redeployed into further profitable area’s of your practice!
Check it out now at Cerebiz.com or call 02 8212 4209