Billing not only has to be on time but it must be for the right amount. Ros Campbell explains how to marry efficiency with accuracy.
Some accountants expend significant administrative time getting their own figures right. There are typically two reasons why this happens.
First, if an individual partner is assessed on the profit – or loss – that he or she makes on behalf of the business, it’s tempting to ring-fence one month’s profits to offset against future losses. The administrative effort involved in juggling the postings around becomes an (unjustifiable) overhead that undercuts those self-same profits. If the performance reporting reflects the accurate partner position anyway, then the process is unnecessary.
How can you create a culture where partners are able to take the long view rather than measuring success or failure on a month-by-month basis?
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