So your controller has left you with messy accounting records, and you’re not sure what to do next. This article can help you navigate this challenge and hopefully salvage a challenging situation.
What to do if your controller has left you with messy accounting records
A qualified controller should have the proper credentials and integrity to not leave your accounting books a mess. But, unfortunately, mishaps can happen. If you find yourself in this position, it is important to act fast.
An accurate and up-to-date view of your business’s numbers enables top-level management to make swift decisions that can save your business time and money. Missing just one transaction in your books can have a ripple effect on your accounting records, which will not only influence the economic outlook of your business but may also lead to run-ins with the IRS.
Here’s how to navigate a mess in accounting:
1. Look into bank records vs ledgers
The fastest way to identify discrepancies and possible problems on the accounting side of your business is to study the bank recon statements and compare them to the ledgers. There are many reasons why certain transactions may not reflect on both. This could range from an oversight on the part of the bookkeeper or a lack of sufficient application integrations within your accounting software. But, despite these being common issues, it is usually picked up fast when a controller keeps a handle on the books and checks them regularly. There may be an indication of trouble in the accounting system if discrepancies date too far back. You can easily spot errors and discrepancies with Netsuite’s highly customizable reporting functionality, which widely tracks the finances of enterprises, and makes it easy for you to drill down into specific transactions, monitor account records, and spot differences within your ledgers.
2. Consult an expert
Remember that the accounting side of your business generally tells a story, and that missing transactions can easily be resolved by asking the right questions. It may be possible to do this internally if your bookkeeper has oversight of the transactions and works closely with the accounting software and records handled by the controller. But, if the missing information is too dense or dates too far back, it will become a challenge to try to resolve this on your own. Your business may need to appoint the services of an expert CPA that understands the ripple effect of missing information in the ledger and who can trace transactions back to the root. In addition to this, a CPA can identify how certain gaps may have crept in and work to resolve them by finding their root cause. Setting up adequate software integrations that work well for your type of business, also comes into play here. A CPA can make recommendations based on the industry and bespoke needs of your business.
3. Implement accounting software with required integrations
NetSuite’s financial management functionality helps to automate core finance and accounting processes provides detailed insights into the performance of your business and reduces the risk of reporting errors. This not only safeguards your business against massive gaps in accounting data, but it also offers automation which means that your accounting division eliminates human error and merely performs an overseeing function.
The benefits of Netsuite’s financial management functionality
- Less manual processes: special automation that can be set up within Netsuite helps to streamline manual processes that waste time and resources.
- More accessible data: With Netsuite, your business has a single access point to transactional, financial, and operational data in real-time, which reduces the possibility of errors and major accounting messes later on.
- Accurate financial reporting: By replacing manual spreadsheets your business eliminates duplicate data entry and incorrect formulas, which boosts financial accuracy, keeps records clean, and reduces the risk of accounting messes.
- Ensures compliance: Netsuite applies the appropriate accounting rules for revenue recognition, amortization and depreciation, prepaid and deferred expenses, and other financial processes. This also serves as a safeguard against ripple-effect accounting issues.
NetSuite is a powerful tool for accounting within large enterprise businesses. At this level, your business cannot afford massive accounting messes – it could cost you gravely. Working alongside a qualified professional and making use of highly capable software can help your organization stay on track on the accounting side and prevent major messes in accounting. If you are interested in getting an efficient accounting management system and accurate business data, our experienced team of accounting professionals can help your business set up and integrate NetSuite software to function effectively.
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This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. Articles are based on current or proposed tax rules at the time they are written, and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
