With smart break-downs, everyone’s job is easier.

Insight:
Many organizations struggle to gather and process their financial information because they utilize only one system to process every transaction.
The following flawed system represents for example, the usual process utilized by the accounting department in many organizations:
Now, The Accounting Department must repeat each of the four processes for each department. Without doubt, this is an inefficient and time-consuming process that leads to frustration, endless repetitions, and errors.

Solution:
The first three processes could be easily avoided by simply requiring each department to be in charge of their own transactions. They can fix/update financial transactions that apply specifically to their department much more easily and rapidly than a central accounting department.
The proposed strategy here is to create an assembly line of processing information through each department leading to one comprehensive package. In terms of management efficiency, it establishes accountability because each department’s manager will be responsible for converting their unique data into a comprehensive report to submit to the central unit.

Insight:
Business books and theories often outline the many management systems available to implement within an organizational setting. Furthermore, these books often point out the pros/cons when using various management reporting systems without declaring the frontrunner. From a strategic standpoint, departmentalizing the reporting system by each unit is the superlative system to utilize. The other methods force confusion because they often lack basic responsibility, accountability, and systematic execution.

Other articles

THE ART BEHIND A CYCLICAL INVENTORY SYSTEM

THE ART BEHIND A CYCLICAL INVENTORY SYSTEM

Cost Benefit Analysis should be the driving force when speculating. There are many different methods available to manage inventory. The most effective will always involve attention to detail, offer a precise accounting of the volume at any given point in time, and...

Break the Crystal Ball: Consult the Business Intelligence Software

Break the Crystal Ball: Consult the Business Intelligence Software

Have you ever gone to a psychic or a gipsy with a magic crystal globe to see your future? No? But you must have seen it on TV or in cartoons at some point in your life, so you know how the story goes. The globe reveals the future and provides a guide on what’s to come...

DEVELOP EFFICIENT QUALITY CONTROL STANDARDS

DEVELOP EFFICIENT QUALITY CONTROL STANDARDS

Quality Control Standards (QCS) ensure excellence in the delivery of products/services. With strong QCS, a company will remain competitive and grow its consumer base, and therefore develop a strong brand. The reason why many companies do not favor a complete...

Big Data

Big Data

Big data is still data, but it is large or massive. It is a collection of data that is complex, massive in size and continues to increase with time. It is challenging to process big data if a person or institution uses traditional methods. Due to its size and...

Artificial Intelligence

Artificial Intelligence

Artificial intelligence, is machine intelligence. Unlike that of animals or humans, Artificial intelligence is anchored on human innovation, creativity, the invention as well as knowledge. These machines are programmed to think and process data like humans. These...

DEVELOP OPTIMUM DISTRIBUTION CHANNELS (ODCS)

DEVELOP OPTIMUM DISTRIBUTION CHANNELS (ODCS)

Selling is a Route with multiple shortcuts. Optimum Distributions Channels (ODCs) represent the best supply avenues a company can establish. ODCs are extremely critical in the operational process of an organization because the decisions to set up specific avenues will...