Accounts Process Restructuring can be defined as the activity of looking into the existing system of an organization, discover the mistakes or irregularities that may have occurred, suggest improvements, put systems and suggest recommendations so that such irregularities do not occur in the future.
Traditionally, account keeping was seen as an exercise to record the financial data of an organization accurately and then processing the data into a more readable format; also for use by the statutory authorities. Over the years, as computers became a household fixture and technology became affordable, accounts as a number gathering exercise has started taking very little time. Also, with balance sheets becoming complex because of globalization and other factors, analyzing financial information has become extremely important. Financial information needs to be studied in order to take informed strategic business decisions.
Strategic business decisions involving a complex matrix of resource optimization, in present day business environment, has thrust upon the industry leaders to view financial implication of every decision closely. Sustaining ‘cost of operations’ merged with strategic imperatives to ‘consolidate and diversify’ involves dexterous financial planning to service identified growth platforms and develop alternate revenue streams.
While the raisond’etr of business is to maximize profits, creating a value for internal and external stakeholders is critical to ensure scalability with sustenance. Evaluation of ‘systems and processes’ coupled with compliance statements are mandatory today to qualify any business entity aspiring for the big league.
Account Process Restructuring, is hence, a pursuit in this direction.