Accounting – The Three P’s

A strong accounting foundation is a must have for any business, large or small. You must have accurate tracking and documentation of all financial transactions for your business to succeed. A solid accounting practice for any company comes down to the Person, the Process, and the Program; The Three Ps. Nailing down these three can make all the difference in an accounting department.

THE PERSON

Having the right person lead the accounting department in your company is one of the most important keys to financial success. There are a wide range of skills that your ideal head of accounting must possess. First, the person must be EXTREMELY DETAIL ORIENTED. Accounting looks different for every business, and scenarios will pop up that you may not have seen or managed before. Being able to quickly determine how to properly account for a transaction, as well as how that transaction will affect your bottom line is important. Maintaining consistency in data recording and reporting is also important to ensure you can run and analyze data and trends accurately later. 

Another vital skill for an accounting professional is PROBLEM SOLVING. This person will be thrown curve balls every now and then, and they must be able to analyze the data and provide a solution and/or an answer to your executive team. Next, FORWARD THINKING. You must be able to anticipate potential future outcomes while also focusing on what’s actually happening in the present. 

Finally, the most important trait for this person to possess is INTEGRITY. As the head of accounting, this person is essentially being given the keys to a business. They will have access to very sensitive data and must have a mindset that much of what they see is confidential. They will need to ensure that information is only shared with those that are privy to it. This lead must also be able to admit when something looks amiss — if an error is found, it must be corrected. Being able to own those mistakes, fix them and learn from them takes someone who is honest and trustworthy.

THE PROCESS

Having the right process in place for specific business needs will help with efficiency and accuracy on the financial side of any operation. First, determine the desired results, then identify the data that is available to achieve these results. If the data is not available, what needs to be done to obtain this information? Trial and error will likely be used to figure out what process works best. The end goal should be to have a process in place that provides the best results AND one that eliminates manual work. 

Once the process is finalized, always be on the lookout for ways to make improvements. As the business grows and technology advances, be ready to adapt to more efficient processes.

THE PROGRAM

The last “P” is the Program. To keep accurate accounting records, a variety of accounting programs and software, including QuickBooks, NetSuite, Sage, Excel, Numbers, and likely several other industry-focused programs will be necessary. These are key to having accurate data within your accounting system. Trust is important regarding the financial program being utilized, as they are used to calculate business success. Ensure all resources available are being used to learn everything possible about the programs used (these are often available free of charge)! 

At the end of the day, having three solid “Ps” in place and trusting the People, the Processes and the Programs will allow you to see an accurate snapshot of your business and how everything you do affects your bottom line.