The relationship between compliance and productivity
Historically, the answer to this question may have been something along the lines of “implementing compliance negatively impacts productivity because of all the time and resources involved.” However, today the use of technology has meant that compliance and productivity are not two competing outcomes but can instead be goals that are achieved with the same processes and tools.
Productivity, compliance and accounting
One of the key processes where this is particularly evident is accounting. Manual, paper-based processes can present a range of difficulties for both productivity and compliance. Delivering a compliance best practice accounts process can result in productivity gains of 65% and 90% using accounting software, as opposed to an older manual workflow. One is the natural result of the other when switching to an accounting system that makes processes more transparent, easy to manage and much more accountable.
Using financial software to improve business processes
The benefits of automation highlight one of the most obvious advantages of switching to accounting software to handle accounting workflows. This enables the more repetitive tasks to be completed automatically, as opposed to being manually handled. There are obvious productivity gains here, as labour that adds no real value to the business is being removed from the process and handled by the software instead. So, for example, coding invoices or selecting the right approval process for the invoice is all handled automatically. However, it’s not just productivity that is improved by the use of automation in accounting software, as compliance benefits too. Best practice compliance becomes achievable in a way that is simply not available to those still using a manual accounting process.
Manual financial and accounting processes can be opaque and immediately accessible knowledge is limited to those who are manually doing the work. The use of financial software makes every step in the process much more transparent and traceable, with some obvious advantages when it comes to implementing best practice compliance standards. Productivity, too, benefits from an increase in transparency, as progress and status, data and documents are instantly accessible to those who need to view them. So, the status of an invoice, for example, is instantly available to anyone in the business with the requirement to view it, without the need to make a phone call or check in with someone else. As all data and information is available in real time, accuracy is improved too and time is saved in searching and checking whether enquiry results are current.
Better functionality saves every business money and reduces the kinds of mistakes, oversights and errors that can also lead to compliance issues. Accounting software is designed to provide the functionality that not only offers the opportunity to make processes more efficient and productive but also aligned with the most up to date compliance requirements, as well as the needs of the business.
If productivity and compliance are important to your business, you could boost both by switching to SunSystems – contact us to find out more about how this powerful accounting software could support your business.