Real-time Financial reporting basically means that an event must be reported as and when it occurs rather than in the later stage. In this same context, real-time accounting means retrieval of information that is stored in the accounting system by reducing the lag between the recording time of accounting and the time of availability. Real-time accounting is used to make accurate information available as soon as possible.
Some benefits of Real-time accounting and financial reporting:
- Removing batch processes: Real-time accounting often ensures that information is updated at one point in time. For example, when an approved invoice gets posted, the vendor accounts must be posted, and the same should be updated on the expense account and in the general ledger. Simultaneously, inventory and other activity costing should be kept updated. This will ensure that errors are minimized and all updated information will be made available to all the stakeholders.
- Syncing different books: Most businesses today distribute some part or all parts of their accounting operations. This means data redundancy is high. Now, applying real-time accounting can eliminate the need to replicate the data and it also helps the postage of data in more than one database simultaneously.
- Informed decisions can be made: Real-time accounting ensures that information is being updated on a regular basis, which is best for the needs of the organization. This availability of the financial information in a timely fashion will facilitate the management to be highly agile in their dynamic business environment.
- Information centre: Real-time accounting makes the creation of information hubs possible, thereby allowing access to many users at a given point in time. It also provides the facility for the information to be presented in any format desired.
- Enhancing productivity: Visibility to financial information is more with real-time accounting. This helps the organization in being dynamic and re-prioritizing the tasks based on need. This had been found to enhance the compliance, productivity, and accuracy.
So, why should you outsource real-time accounting?
The one challenge that organizations face in implementing real-time accounting is the burden it would place on the existing resources. Outsourcing real-time accounting provides access to a whole new level of the trained and expert team in all aspects of finance and accounting. You can also get access to the latest technology available. All these not only ensure accuracy of data, but also cost efficiency. You will not have to invest on infrastructure or the resources. Plus, when you outsource real-time accounting, paper based reports would become obsolete, which means data can be made available anywhere at any time. By and large this will help the company to stay proactive.
To enjoy all the above mentioned benefits of outsourcing your real-time accounting, do contact Joyce at +1-516-717-2049. We can help you figure out the ways to improve your productivity and profitability.