Feb 6, 2014
Once the decision has been made over the annual budget of the company at the beginning of the year, we also need to consolidate the Year End or Month End Financial Statements to measure what actually happened vis-à-vis the annual budget that was allocated at the beginning of the financial year. This could be done by assembling an year end profit or loss statement or income statement.
To assemble the Profit and Loss or Income Statement, the accounting and finance department needs final figures from all the relevant departments as soon as possible to ensure quick decisions to be taken from the management in lieu of the financial results for that year. However, this may involve lots of movements of emails within the relevant departments which may involve lots of time which could be saved by using a Cloud Based Accounting application.
Many a times, companies prefer the usage of web based master spreadsheet like Google to avoid excessive to-and-fro of emails within the departments, as each department can enter its data directly into the spreadsheet and the decision makers have all the information present to them real time.
However, an even smarter move could be the usage of a Cloud based Accounting application that would help in consolidation of all the data, analysis and subsequent report generation in the desirable format to the management. Not only will this application assist in the generation of various relevant accounting reports like balance sheet, income statement, cash flow statement etc, but also, it will help reduce the headcount in the accounting department of the company as they will only need fewer employees to manage these applications rather than having a bigger workforce to assist in accounting tasks.