Three Accounting Pain Points Staffing Companies Should Eliminate
Many staffing companies suffer from under-utilizing their accounting software or even by using an accounting platform that doesn’t rightly serve their needs. What’s worse, a few companies affected by bad accounting are unaware of the true extent of the problem.
How do you know if your accounting is limiting you? Continue reading to learn what challenges your staffing company should avoid.
Too many systems, not enough integration
Are you using multiple accounting systems that don’t align or integrate properly? For example, you would send invoices to clients and manage your employees’ payroll easily through the same platform for your payroll and invoicing processes. However, managing your billing and time tracking is more complex and time-consuming when these systems don’t work together.
A few of the pitfalls to this — as opposed to using one, undivided platform — include:
- More prone to accounting errors. When manual input and duplicate financial data are required for managing multiple spreadsheets and systems, traditional bookkeeping commonly leads to human error. In addition, the lack of automation may lead to inaccurate financial reports.
- Wastes time and efficiency. It’s an inconvenient way to work. Manual entry and other rote tasks take time and labor, making it a costly and inefficient way to use valuable resources.
- Doesn’t provide real-time insights. When your finances aren’t connected and won’t give you the full picture of your accounting, it’s harder to make real-time decisions that affect your staffing company.
Limited visibility and inaccurate cash flow reporting
Your staffing company’s health and growth potential rely heavily on understanding your cash flow. Without true insight into your spending activities, you could be leaving money on the table (—or worse, overspending without realizing it).
Ask yourself the following questions to discover if you need a better system for understanding your staffing firm’s cash flow:
- Do my accounts receivable accurately reflect my cash balance?
- Is my cash flow stable enough to pay staff before a job, even if the job’s invoice won’t be cleared until after the staff is paid?
- Have I considered other alternatives to self-funding, such as invoice factoring?
If any of those answers were no, it might be time to give your current accounting process an overhaul.
Inaccurate assessment of job profitability
Using an accounting platform that cannot filter through by job or quickly determine the potential revenue associated could result in lost opportunities and misplaced talent. Take a hard look at how you’re estimating job profitability.
When you have access to fast and accurate profitability reports, you’ll better understand where you stand financially and if those projects are benefiting your business.
Overcome your accounting challenges with Lescault and Walderman
You don’t want your financial processes to keep you from reaching your fullest potential. Outsourcing your accounting could be exactly the solution you need to avoid any crippling pain points associated with handling your finances in-house.
At Lescault and Walderman, we understand that finding the right solution can be frustrating and more than a little stressful. That’s why we have sought out partnerships with leading industry vendors to provide our clients with a personally tailored financial solution.
Develop a convenient, efficient, and accurate accounting workflow that drives revenue and productivity when you work with our financial experts. If you’re looking for a new accounting solution or you’d like to find out how we can help, contact us and sign up for a free accounting evaluation.