18 Nov Analytical Review Overview
Analytical Review Overview
Analytical review procedures are important not only from a compliance standpoint, but, often more importantly, from a client relation standpoint. Clients are looking for the Accountant that goes the extra mile to assist them in creating a profitable business. The perception by the public is that the CPA is responsible even when professional guidelines have been followed. Increasing pressure from clients is forcing a shift to a more proactive way of working with the owner to improve the business. It is the recommendation of this author that it is important for small business clients to utilize their accountant within their area of expertise: quarterly and annual tax planning, financial discussions prior to making major decisions, etc. These are all examples of situations when the client should consult their accountant to avoid any surprises, and hopefully minimize financial mistakes. The main key for the small business owner is knowing their needs and finding a professional (or professionals) to serve those needs.
Re-Engineered Accounting
Although the terminology is now a little dated, re-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical areas of performance such as in costs, in service, in speed, and in quality. By re-engineering the way accountants work with their clients, especially by working with the small business owners to learn how to implement strategies to move in this direction, the result can be a more profitable, happy client. Below is a chart that was designed by Dr. Sheila Kessler of Competitive Edge in Fountain Valley, CA to illustrate the re-engineering of the accounting function:
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Re-Engineered Accounting |
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Analytical procedures are a first step in discovering what is changing in the businesses, and potentially, areas that need to be addressed to reduce risk, increase growth or improve cash flow. There are several ways that QuickBooks can help automate this process form exception and materiality reports, trend statements, and even automated expert analysis.