In the ever-changing world of nonfiction production, managing your finances can be tricky. A robust and streamlined accounting system, however, can help you avoid costly financial mistakes.
Since our industry is so fast-paced, it’s easy to overlook the subtle signs that indicate your accounting system might be due for an upgrade. Below, I’m sharing 5 key indicators that it’s time to change or upgrade your accounting system.
#1 You can’t find or run real-time reports
When managing large-scale productions, the ability to make informed decisions is paramount. If finding or running real-time reports has become a daunting task, it’s a clear signal that your accounting system may need an overhaul.
Real-time reporting is the key to financial visibility and control, enabling producers to stay ahead of the curve. Outdated accounting systems can prevent you from accessing accurate data, leaving you wondering what financial move to make next.
Instead, install an accounting system that provides real-time reports whenever needed so you always have a clear picture of your financial landscape. Detailed, down-to-the-minute access will allow you to make better decisions and feel in control of your finances.
Question to Consider: How quickly can you run real-time reports?
#2 Tax time becomes a huge headache
As tax time approaches, producers with an outdated accounting system are often overwhelmed. Preparing taxes on their own, or with an existing bookkeeper, leaves them with a headache. All that manual data entry and getting up to speed is a recipe for mistakes.
Fortunately, a modern accounting system, like our Line It Up System here at Prod Co, streamlines the tax process while reducing the chances of costly mistakes. Rather than breaking a sweat when tax time comes around, you can rest easy knowing you have a system that’s easy to use and won’t have the IRS knocking on your door.
Question to Consider: Is tax time a major source of stress?
#3 Too many inefficient manual processes
The issues that come with an inefficient accounting system can significantly lower your productivity levels. Manual data entry, duplication of efforts, and other time-consuming tasks drain valuable resources and lead to errors with costly consequences.
These manual processes have many drawbacks—increased labor costs and decreased accuracy being two of the most significant. That’s why it’s vital to utilize an accounting system powered by someone specializing in production so everything is automated and secure. You’ll spend less time manually working on your finances and more time on your actual productions.
Question to Consider: Are you overly reliant on manual processes?
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#4 You can’t make informed decisions
Making informed decisions regarding your finances can make or break your production business. So, as I discussed earlier, a lack of real-time data will hamper your decision-making. The last thing you want is to make a crucial decision based on outdated financial information.
Whether it’s forecasting future cash flow, optimizing your resources, or identifying areas for savings, we help nonfiction producers like you install accounting systems that enable you to clearly and confidently make decisions.
Question to Consider: Do you need the ability to make more informed decisions?
#5 Profitability feels like a guessing game
Navigating production without a clear financial picture can downgrade profitability management into a guessing game. When you fail to understand your costs, revenues, and overall financial health, you risk making decisions that hurt your production and/or your business as a whole.
But with the right accounting system, you can access accurate financial forecasts and insights instead, turning that guessing game into a well-informed strategy. With a comprehensive view of costs and revenue, you’ll make proactive decisions that set your production up for long-term success.
Question to Consider: Is your profitability a mystery?
Convinced it’s time to change your accounting system?
The team and I here at Prod Co are dedicated to helping producers like you spend less time crunching numbers and more time being creative.
Ready to move forward with clarity and confidence in your numbers? Schedule a call today.
