Rose Report: Issue 17
The Value of Visibility
As any good leader knows, maintaining open lines of communication and up-to-date financial information across an organization is crucial to success. One way to improve visibility of financial information is to use the cloud to help achieve real-time visibility into all of your accounting transactions.
When a company employs cloud-based software such as RFSWorkflow, it has quick and easy access to all of its financial transactions. For example, when bills are received, they are scanned, uploaded, and entered into the RFSPayables (an RFSWorkflow module). An executive can run reports detailing all of the accounts payables or bills for the company—he will be able to immediately see such key information as the vendor name, the dollar amount, who approved the transaction, where it stands in the approval process, and even view a copy of the invoice. The system will even ensure that all the appropriate people sign off on a transaction before it is paid. If an invoice is rejected, it will also show the reason why.
Whereas in the past, employees would have to hunt down different people to check on the status of each transaction, with RFSWorkflow, that information is readily available and easily searchable from anywhere in the world. “It’s a lot easier than going to a file cabinet,” says Ted Rose, president and CEO of Rose Financial Services. “Once something is entered into the system, you never have to go to that file cabinet again.” This not only saves time, but storage space as well. Because the IRS accepts scanned documentation, once a transaction is entered into the system, original documents can be securely shredded. However, government contractors must comply with FAR regulations as well, which require that contractors maintain paper copies of all bills. The DCAA does in some cases require contractors to produce original documentation, therefore Rose recommends that contractors box their original documents in chronological order, and only pull them only if they receive a specific request to see them from the government.
Visibility into the journal entries produced during the closing of the books each month is also important. RFSClosing tracks each journal entry and the related documentation produced in the closing process. All of these journal entries are visible to management and auditors, simplifying account analysis and audits down the road.
By granting key leaders visibility into the most up-to-date information, RFSWorkflow helps organizations manage risk and ensure accuracy and timeliness. Writes Banking Technology: “Timeliness is especially critical, as delays in achieving visibility inevitably lead to money movement (or money protection) decisions being further delayed.”