Building a robust accounting department is a critical endeavor that lays the foundation for informed and data-driven decision-making within an organization. Imagine your department as a machine: Skilled people operate well-defined processes using powerful technology. When all three work together, your team can generate timely, accurate financial reporting that becomes the foundation for valuable insights that drive growth. But misalignment creates friction; Manual tasks, data silos, and frustrated employees hinder progress. How do you bridge those gaps and harness the power of people, process, and technology?

While constructing a top-notch accounting department might seem daunting, following a well-structured approach can lay a strong foundation for success. Although different industries face unique challenges that necessitate customization, certain vital components are universal to any accounting department.

Component #1: People 

The first component of building a robust accounting department is the people on your team. Your accounting team is the heart of your financial operations: They paint a clear picture and bring everything together to deliver accurate reports. Ensuring you have the right people in the right roles is paramount for the team to excel. 

Having strong technical skills is a basic requirement. But you also need team members to have the soft skills to effectively manage processes, identify the weaknesses and opportunities in the data, and share the story that your data tells. Critical capabilities should be tailored to your business needs but typically include:

• Proficiency in accounting principles
• Knowledge of your company’s accounting software
• The ability to prepare and review financial statements
• Strong communications with peers, stakeholders, and support teams
• Organizational abilities such as time management, project management, and ability to execute
• Data management and analytics

Depending on the mix of skills and capabilities within your existing team and the availability of new talent, the traditional approach would be to determine where to retain, retrain, and recruit. In today’s environment, you also have the option of creating a more flexible, scalable team by outsourcing certain functions. In all cases, a strong recruitment program attracts skilled professionals, while thoughtful training and development initiatives foster retention, upskilling, and growth.

Component #2: Processes 

It is critical to regularly assess, update, and document your accounting team’s processes. Greater accuracy and efficiency can be achieved by increasing the number of repeatable procedures that have been automated, while more complex and value-added processes can be assessed to make sure they have clearly communicated milestones and expectations. To begin the process of redesigning your processes where needed, the top areas to focus on include:

• Process mapping: Analyze your workflow. Are there bottlenecks or inefficiencies? Solicit feedback from your team and look at how these processes impact other departments in your organization.
• Document your procedures: Consolidating a well-defined set of processes in a single reference manual helps to drive consistency and reliability. This is valuable both as a training tool and user manual.
• Role definition: Outline roles and responsibilities to provide clarity, eliminate duplication of efforts, and help ensure high-quality deliverables. This also enables team members to manage their performance, development, and deliver on expectations.
• Internal controls: Robust controls help prevent fraud, manage risk, and ensure compliance with current laws and regulations. Creating checks and balances, and establishing oversight with ongoing monitoring helps maintain the integrity of your team and drives confidence in the financial results it shares.

Component #3: Technology

What do you want to accomplish with your technology? Reduce time to close, increase accuracy, align processes? This is the opportunity to evaluate your department’s current accounting software and tools against the results you want to achieve. With so many options in the market, you can optimize your existing technologies and assess new ones. Some considerations include:

• If you are looking at new technology, does it integrate with your current tech stack?
• Do you need industry-specific capabilities, and does this technology provide it?
• Is it the right fit for the size and complexity of your company?
• What training and tech support does the company offer?
• Does it have a user-friendly interface?
• Is it scalable as your needs change?

It is important to determine if your current tools and the utilization of those tools are driving the efficiency, productivity, and consistency you need. Whether looking at an established technology company or a start-up, you will want a sense of how they are investing in the modules that are a priority for you. Many solutions today incorporate the ability to leverage automation, AI, and advanced analytics that can elevate the deliverables and insights that your team delivers. Additional approaches include hiring advisors who can help you with vendor assessment, selection, and implementation; looking into managed services arrangements and co-sourcing your technology support.

Strategic integrations

The value your accounting department can provide hinges on the integration of its three primary components: people, process, and technology. Even with these elements in place, the key is in how you combine them. There are several ways to approach this: 

• Creating workstreams within your team and connecting with peers whose departments are impacted
• Collaborating with your IT department to evaluate your technologies and assess how existing and new technologies could impact your people and processes
• Identifying industry best practices and case studies for a variety of in-house, outside advisor, or hybrid resourcing that provide a customized support model

Bringing in outside expertise as needed can offer access to personnel, processes, standardization, and technology implementation capabilities that may be lacking internally.

A successful accounting department resembles a finely tuned system where each component complements the other, creating an effective team. The right personnel, supported by efficient processes and appropriate technology, form a solid foundation that can drive your business forward. Whether you need to build, enhance, or restructure your accounting department, a balance of internal and external resources to help shape your organizational structure, refine your processes, and assess your technology can position your team to create added value for your company’s long-term success.