Accounting/Finance Hopping Over Dollars for Dimes: Automating Revenue Recognition is an Investment in a Tool
It’s no secret that your accounting department, whether it is the sleep deprived entrepreneur running it all or a well groomed team of accountants working in tandem, is undervalued. The accounting department is undervalued as the department is performing tasks well below their pay grade. This is especially true when it comes to budgeting for the right tools the department should be using.
Tasks such a recognizing revenue are repetitive, time consuming, and, more often than not, giving temp work to employees with greater skills and contribution potential than this work (check out what that potential looks like in Deyrmenjian’s article published by Forbes below). It isn’t fiscally responsible to put one of the your greatest assets and expenses, your brilliant finance wizards on a task that can be done in an automated system for dollars or by a data entry clerk that didn’t necessitate the same level of education or salary.
As the saying goes, “don’t step over a dollar to pick up a dime.” Automating revenue recognition takes the tedious, error-prone task of calculating and logging deferred revenue and turns it into an afterthought. This investment has a high return on investment when used in context of the salary of the employee per hour. Are you fully utilizing the investment of your own time or the time of your employees?
What is the return on your investment or lost on your investment when you decide who does what job or what tools will be purchased for you or your team?
Whether it was by the glow of a computer light teaching yourself the complexities of the world of finance or into the early morning in a library of fellow accounting students or a dizzying combination of the two, those who have worked to possess the highly valued skills of accounting and earnings management are underutilized and have better tasks to conquer for their respective corporations than revenue recognition. This task is at best a nuisance and at worst a source of unnecessary stress and workload distracting from bigger and better projects.
(Underutilized Labor Bureau of Labor and Statistics: http://www.bls.gov/opub/mlr/2014/article/the-increased-supply-of-underutilized-labor-from-2006-to-2014.htm)
(Forbes: Tripping Over Dollars, Picking Up Pennies http://www.forbes.com/sites/lizadeyrmenjian/2013/08/28/tripping-over-dollars-picking-up-pennies/#6c29cb60706c)