In the business world, we have all experienced, or at least heard about, the torture of accounting closures, whether monthly or annually.
Personally, I have lived them quite closely, since I’ve been responsible for doing them for the majority of my professional life. Different companies, industries, sizes, and even countries. And what I’ve come to realise is that if you don’t have the right tools, nor the collaboration of the other areas, accounting closures can, and will be, a nightmare.
From working on the weekends to staying overtime, we have all felt like the department is our family. Just for it to end in a “something doesn’t quite add up”. And there you are, feeling like a detective trying to find the thread of the problem.
What if the system crashes? Well, God saves us, we are lost. We might as well go back to the beginnings of accounting; take out the notebooks and beg we reach quadrature.
Moreover, let´s remember one thing, accounting composes the financial statements, which are a direct reflection of the condition of the company. They help us analyse the rentability, solvency, and the financial situation in general.
Therefore, I don’t even have to explain how vital this information is, and for it to be trustworthy. If it does not reflect the reality of the business, then what good is it for? So, what can one do when you don´t have access to this information or you have it 20, even 30, days after the monthly closings. Or even if you do have it, it is not accurate data and you don’t trust the numbers regarding expenses, costs, and even less a cash cycle index.
What happens here is that some companies see accounting as the operation, which it is not; in reality, is the result or reflection of the operation. The translation in numbers which we then report to our stakeholders.
Imagine this utopia where we all focus in actually going through the process in the proper manner, and everyone involved, directly or indirectly, knew where they were standing up. Knowing exactly what the next step is would only be one of the few positive side effects one would expect.
Having a comprehensive system, that helps you turn this accounting nightmare into another simple process, is something only a few can dream of, even less call a reality. Get to know LOVIS, and become one of those who had a dream, and made it true.
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