April 2018 - AccountingX

5670 Wilshire Blvd. Suite 1800 Los Angeles, CA 90036

Los Angeles Business Coach Bringing Together Innovative Insights

Los Angeles Business Coach Brings New Ideas to Life!

When you think about the word; ‘Innovation’, we don’t usually think about ‘Accounting,’ we think about some new idea or new way to do something  with accounting it’s just about numbers so how new can that be? It potentially can be the success or demise of a business if not done accurately, but what else should your accountant be doing for you?

While we continue innovating other areas of our business, we also need to re-think our accounting systems as well. It seems that the finance part of the business module gets in the way at times, but in all actuality, our finance group could help facilitate the innovative ideas if we would just align ourselves with them, hence bringing together innovative insights.

Where to begin? We begin with something practical and a simple plan of looking over the numbers. Maybe try using the right metrics so that we may understand the cause and effect process because it can be detrimental to the overall efficiency of the company. Apply the proper key performance indicators to the business and run a financial health check on a normal basis keeping you in he green at all times.

When is a good time to change or upgrade an accounting system? That is an easy one; at the beginning of your accounting year would be the best time to update the technology used for your accounting processes so that it will operate more efficiently.

Here are a few ideas for bringing together innovative insights:

Include all areas of your business

Embrace new technology and insights

Set aside time to do your own research

Set aside time to innovate new insights.

Re-examine your processes and re-evaluate

Today, there are software’s that assist problem solving for accountants, but being innovative means accountants should set aside time to strategically to be proactive in identifying potential problems so that they may understand what they are in order to apply different, innovative ways to solve them.

To schedule a 15 minute consultation with a Los Angeles Business Coach click here!

Contemplating Project Based Accounting?

Contemplating Project Based Accounting?

The practice of the Accounting profession while steeped in principles, is not cast in stone as the peculiarity of the circumstances may determine how these principles are deployed. Project accounting for instance with a Los Angeles accounting service is an aspect of the practice that demands specialized handling. This is because it is executed on a project-by-project basis with detailed tracking of the individual components of that project. In  got contrast to standard accounting, project-based accounting (PBA) provides a highly focused snapshot of the day-to-day finances thus giving an opportunity for tighter control over budgets, costs, bookings, billings among other areas.

 

Why use a Los Angeles Accounting Service for your Project-Based Accounting?

Many project fails as a result of exceeding the budget allocated and this is not shocking as 34% of projects have no baseline, according to Wellington Project Management. The Project Management Institute also reports that an estimated $122 million is wasted out of every $1 billion invested in projects as a result of poor performance. Harvard Business Review further buttresses the foregoing statistics by stating that the average cost overrun of an IT project is 27%. These are all pointers to the non-existence of an efficient PBA system.

 

Where is it best deployed?

Typically deployed for use in a business like medical services, government contracts, and constructions contracts, PBA allows for close scrutiny to detect areas that may squeeze margins. The objective is however, to find ways of optimizing cash.

 

What Difference do PBA Systems Make?

By using a  Los Angeles Accounting Service for your Project-Based Accounting systems you will accrue a number of benefits. A few of them are as follows:
1. Its ability to record incremental daily expenses and revenues provides vital and immediately actionable information about the areas where the project is failing or otherwise.
2. It provides a detailed oversight of diverse aspects of the project, ranging from labor and materials even to the inputs by various contractors in the project.
3. It provides accurate billing records to employer and contractor alike.

 

For more information on how you can implement a Los Angeles accounting service firm click here.

 

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