Five tips to avoid confusing administration, accounting and taxation
Posted: Wed Dec 18, 2024 4:24 am
Learn how to assign tasks to the right department, whether it's administration, accounting or tax, and how to foster coordination between all of them.
Coordinating administrative, accounting and tax tasks is necessary for the business to survive and grow.
Technology is providing the right environment for coordination.
The areas of Tax, Accounting and Administration, which support the business, are often confused or not clearly differentiated in companies. This causes problems and inefficiencies, such as work overload, lack of coordination or tasks being handled by inadequately trained people.
To prevent this from happening in your company, the first thing you need to do is to know what the mission of each of these areas is . This way, you can make it known to the entire team.
1) Functions of the Tax, Accounting and Administration areas
First of all, administrators should croatian email list not be confused with administrative staff . They are different concepts, each with a different function. The administrator is the person who administers and manages the company. Meanwhile, an administrative staff member is the person who performs support tasks in the Administration area.
As for the tasks and responsibilities of these departments, the main ones are usually:
Fiscal. Management of all matters relating to taxes and the strategy to comply with the legislation in this area in the best possible way.
Accounting. Managing the accounting impact of tasks performed in the business. For example, cash flow, invoicing and forecasting, and preparing financial statements.
Administration. Management and direction of the company as a whole, coordinating the rest of the areas to achieve the common goal, which is profit.
Save time on tasks and encourage collaboration across departments by using integrated accounting and business management software, such as Sage 50 .
Sage
2) Coordination mechanisms, the key for Tax, Accounting and Administration to work smoothly
The Tax, Accounting and Administration areas have clear functions and responsibilities. However, it is common for them to be confused because they work closely together on a day-to-day basis .
For example, tax management, which is entrusted to the Tax department, has an impact on the company's accounting. In addition, it requires making payments within certain deadlines, tasks that require good coordination with the Accounting and Administration areas.
In order to ensure coordination between these three areas, it is important that they work with a clear distribution of tasks . To do this, an organizational chart describing the tasks and functions of each position and area of ​​responsibility can be useful .
Once responsibilities have been defined, it is important to define and document workflows for more complex processes. You will indicate how each department is related and the details of each input and output throughout the entire flow.
Administrative, accounting and tax tasks are related, but can be performed by different professionals.
Sage
3) The importance of workflows
You should always keep in mind that these procedures are dynamic. The way of working and the relationships between departments will change over time for various reasons, including the following:
Efficiency . You may find a way to do the same thing with fewer resources, or more with the same. This may be the result of a technical or organizational advance, or the discovery that some of the means you were using were not necessary.
Regulatory changes . Sometimes, reforms in sectoral regulations, labour laws and, in general, the legal framework lead to changes in workflows. There are numerous examples, such as time control , changes in payments and the relationship with banks. The latter is facilitated by PSD2 , the SII, mandatory electronic invoicing in B2B relations, anti-fraud software and more.
Variations in the prices of production factors . These cause changes in the way of working because they do not usually evolve at the same growth rates. Thus, those that become more expensive in relative terms tend to be replaced by those that become cheaper.
Coordinating administrative, accounting and tax tasks is necessary for the business to survive and grow.
Technology is providing the right environment for coordination.
The areas of Tax, Accounting and Administration, which support the business, are often confused or not clearly differentiated in companies. This causes problems and inefficiencies, such as work overload, lack of coordination or tasks being handled by inadequately trained people.
To prevent this from happening in your company, the first thing you need to do is to know what the mission of each of these areas is . This way, you can make it known to the entire team.
1) Functions of the Tax, Accounting and Administration areas
First of all, administrators should croatian email list not be confused with administrative staff . They are different concepts, each with a different function. The administrator is the person who administers and manages the company. Meanwhile, an administrative staff member is the person who performs support tasks in the Administration area.
As for the tasks and responsibilities of these departments, the main ones are usually:
Fiscal. Management of all matters relating to taxes and the strategy to comply with the legislation in this area in the best possible way.
Accounting. Managing the accounting impact of tasks performed in the business. For example, cash flow, invoicing and forecasting, and preparing financial statements.
Administration. Management and direction of the company as a whole, coordinating the rest of the areas to achieve the common goal, which is profit.
Save time on tasks and encourage collaboration across departments by using integrated accounting and business management software, such as Sage 50 .
Sage
2) Coordination mechanisms, the key for Tax, Accounting and Administration to work smoothly
The Tax, Accounting and Administration areas have clear functions and responsibilities. However, it is common for them to be confused because they work closely together on a day-to-day basis .
For example, tax management, which is entrusted to the Tax department, has an impact on the company's accounting. In addition, it requires making payments within certain deadlines, tasks that require good coordination with the Accounting and Administration areas.
In order to ensure coordination between these three areas, it is important that they work with a clear distribution of tasks . To do this, an organizational chart describing the tasks and functions of each position and area of ​​responsibility can be useful .
Once responsibilities have been defined, it is important to define and document workflows for more complex processes. You will indicate how each department is related and the details of each input and output throughout the entire flow.
Administrative, accounting and tax tasks are related, but can be performed by different professionals.
Sage
3) The importance of workflows
You should always keep in mind that these procedures are dynamic. The way of working and the relationships between departments will change over time for various reasons, including the following:
Efficiency . You may find a way to do the same thing with fewer resources, or more with the same. This may be the result of a technical or organizational advance, or the discovery that some of the means you were using were not necessary.
Regulatory changes . Sometimes, reforms in sectoral regulations, labour laws and, in general, the legal framework lead to changes in workflows. There are numerous examples, such as time control , changes in payments and the relationship with banks. The latter is facilitated by PSD2 , the SII, mandatory electronic invoicing in B2B relations, anti-fraud software and more.
Variations in the prices of production factors . These cause changes in the way of working because they do not usually evolve at the same growth rates. Thus, those that become more expensive in relative terms tend to be replaced by those that become cheaper.