Innovative accounting – mission possible!

Accountants being innovative? When you stop laughing, keep reading…

In order to make a difference and put your added value to the end product, start thinking outside of the accounting square. Ask yourself, “What can I do to make this product better, more useful, friendlier?” In so many instances the answer is simple and at your fingertips, but somehow we just keep doing the same old routine. Why? Because that’s the way we have always done it.

This was the situation I encountered recently where the information being produced by a client organisation was just that – same old same old. Rather than grumbling about it (and listen to others grumble), I decided to be innovative and try something different. I began by revamping a large part of the process and methodology, and turned the “boring” old report into a useful tool that has now been adopted by management and their Board. Since doing so, further enhancements are flowing, not just in the admin area, but throughout the organisation, all the way from management to the floor operatives.

I reviewed how and where we reported different income streams, how the gross profit was portrayed, and what all of those alterations were telling us. Grant income, in this case, was removed from the gross profit equation and used in a vastly different place on the Income Statement with amazing results. The bottom line stayed the same but the interpretation of the numbers was much clearer and helped to streamline decision making.

So yes, being innovative with accounting is possible! By simply thinking wider and deeper and embracing the objectives and goals of your operation, you can make a difference. It doesn’t matter how big or small the improvement may be, it will still add strength to the brand and the organisation you are working for. Remember that little fish are often the sweetest…

 

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