Cloud-based accounting – Weekly actionable financials
Cloud based accounting – Weekly actionable financials
The views of cash flows, balance sheets, and the income statement provide information about critical financial metrics that every decision-maker will need to monitor overall monthly operations.
Sometimes monthly or quarterly reporting is not of any help because your business is highly volatile and undergoes many changes, even weekly. In such situations, you would need access to your financial position at least once weekly. Preparing the weekly financial statement to understand the week-on-week position and determine the immediate course of action is impossible without the cloud-based accounting system, as writing the entire set of financial statements every week would not be a viable option to adopt.
This article focuses on the need for reporting using a cloud-based accounting system.
Purpose of Accounting weekly Reports
The accounting process has improved, strengthened, and quickened in recent times with the help of integration and automation of business functions. For instance, the transactions of a bank can be automatically downloaded into your business’s accounting system.
Further, technologies undoubtedly have reduced manual involvement and will exponentially reduce the scope of fraudulent activities or manipulation. Technology has increased the efficiency of the overall accounting process, though zero-entry accounting is still a question and idea from the future. Human support and help are still required to ensure that there are no improperly coded transactions or any transactions missed from recording in the first place.
The sole purpose behind weekly reporting is that business owners can have insights into the current financial position of their company along with the position or balance of the accounts payable, accounts receivables, cash flows, and working capital cycle. Further, frequent reporting will help management ensure that everything is recorded correctly. If not, any gaps or fraudulent activities may be detected sooner before causing massive damage to the financial position and reputation of the company.
What are weekly reporting tasks?
Usually, the company you have outsourced your business function dedicates an efficient team to effectively manage your accounting and bookkeeping requirements by closely monitoring the daily work and keeping an eye on everyday transactions.
The outsourced agency curates a systematic and easy-to-understand weekly report to clients per their industry and business needs. These reports contain information related to all the aspects of the business that the client might have demanded, necessary to align the coming week’s task and make informed business decisions. Generally, the weekly reporting list typically contains the following details.
- Summary of accounts payable and receivables in that respective week
- Report of the payroll in the individual week, if any.
- Report on the transactions that took place – impacting the cash and bank.
- An in-depth review of employee expense reports.
- Cash flow position and working capital cycle.
Once the weekly report has been prepared using a cloud-based accounting system and submitted to the client, the outsourcing consultant prepares a list of questions related to un-cleared checks, un-reconciled accounts, or any issues related to accounts payable or accounts receivables or any suspicious transaction.
What are the benefits of weekly reporting?
Weekly reporting comes with several benefits, as enlisted hereunder:
1. Timely access to financial information and safeguarding business against the fraud
Getting insights about your business every week keeps you continually updated with the ongoing processes in your business. Also, it helps you get an idea about whether the new strategies you adopted are working in favor of your business or whether the marketing campaigns are driving quality leads. If yes, what is the return-on-investment rate and the actual cost of acquiring a customer?
In addition, timely access to financials will help you make data-driven business decisions at the right time, which might have the potential to provide you first movers’ advantage over your competitors.
Having weekly insights also keeps the probability of fraudulent activities away.
2. Cost savings
Keeping a constant check on your financials saves you from unnecessary expenditures that would have been unavoidable in the form of late fees, interest on bank overdrafts, etc.
Besides this, if you find any undesired numbers in the weekly financial report, you can immediately take competitive and remedial calls to minimize the effect of an undesired situation that may have occurred in your business.
3. Releasing the workload
Outsourcing your accounting services to experienced experts will remove your burden on managing your financial information and reporting, allowing you ample time to focus on business-essential aspects. Simultaneously, you are also getting real-time access to the information on your business performance which allows you to invest time in framing new strategies, implementing them, and see whether it has the potential to work for your business or not.
Final Words On cloud based accounting system
This article gives you a brief idea about the need and benefits of having a weekly accounting report to take desired actions on time, providing an opportunity to gain a competitive edge and achieve sustainable growth in no time.
If you are looking for an outsourcing agency for your accounting functions, then CFO UAE is the firm that has the potential to meet all your business accounting requirements. Whether you want weekly, monthly, quarterly, half-yearly, or annual reporting, all your needs will be met by them with utmost perfection and efficiency.
