Page 318 - Accounting Best Practices

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Summary
If a controller can designate the order in which all of these best practices are
implemented, it is best to work on streamlining the function first and adding the
data warehousing and ABC functions later. Otherwise, reversing this order of
implementation will result in adding complexity to a situation that is already not
entirely efficient, which may result in a great deal of confusion and a complete
failure to implement any best practices.
For more information on each of the best practices noted in Exhibit 14.2, refer
back to each section in this chapter noted as a separate activity in the flowchart.

SUMMARY

This chapter discussed a variety of best practices for the general ledger function.
Though many of them will reduce the workload of the general ledger accountant
by streamlining the workflow and reducing the number of errors that can enter
into the process, a few can be both difficult and expensive to implement. Some,
such as using the general ledger to support activity-based costing, will even make
the general ledger accountant’s job more difficult, rather than less. Accordingly,
for most general ledger best practices, it is necessary to ensure that there will be
sufficient payback in exchange for installing a new best practice. The payback is
not just greater accounting efficiency, but in a few cases the provision of better
information to the rest of the company.