Welcome to Accounting 2012

“Accounting” is one of the oldest professions, dating back to 4500 B.C.

Before investments and taxation, things were pretty straightforward, money came in and went out and what was left was called “savings”.

Over time, the process became complicated to the point where today, it’s all about projecting expense needs and scrambling to find ways and means of meeting commitments, but the basic approach still relies on ‘ledgers’ which are tedious to maintain and time-consuming to analyze.

“Suppose you are a business owner with ten retail stores. The usual range of questions that arise are  which stores are doing well, which ones are not, should you expand the number of stores, scale back or leave things as they are and, if so, where, when and how?

What if you could, at-a-glance, see past performance, current status and projected status for all ten stores at a single computer screen and dynamically adjust the rate of allocation of revenue across all stores such that each store would be able to meet financial commitments, as these become due?”

At first blush, there is nothing new about revenue/expense projections and executive dashboards, except that it is extraordinarily complicated to set up the apparatus to do this and, after all of the effort to get to where you can sit back and look at your dashboard, there is not much you can do other than stare at the dashboard.

Suppose you could see, at one computer screen, all of your revenue and expense points, and see live transactions rippling through your “accounting” system, in real time, where revenue is dynamically allocated to expense accounts that transition  from “allocated”  to “committed” to “spent”, based on forward expense demands input at the system?

Your executive dashboard now becomes dynamic. You can set the focus to the past month end, to today, to next week, next month, next quarter and see a continuum of the past, present and future.  If the future does not look the way you would like it to look, you can, from the same single screen, change parameters that will adjust revenue allocations so that the future looks the way you want it to look, within, of course, the revenue and credit lines that are available to your business.

Does this sound like the wave of the future?  Perhaps, but for one Civerex customer, it’s not something they would like to do in the future, it’s something they can do now and are doing now.

Accounting 101 never was like this.

About kwkeirstead@civerex.com

Management consultant and process control engineer (MSc EE) with a focus on bridging the gap between operations and strategy in the areas of critical infrastructure protection, connect-the-dots law enforcement investigations, healthcare services delivery, job shop manufacturing and b2b/b2c/b2d transactions. (C) 2010-2018 Karl Walter Keirstead, P. Eng. All rights reserved. The opinions expressed here are those of the author, and are not connected with Jay-Kell Technologies Inc, Civerex Systems Inc. (Canada), Civerex Systems Inc. (USA) or CvX Productions.
This entry was posted in Adaptive Case Management, Business Process Management, Financial Planning, Operational Planning, Process auditing and tagged , , . Bookmark the permalink.

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