I think it’s funny when I ask someone what they do, and he or she replies with something like “I work in digital.” I think to myself, “Really? Everything is digital.” But, a response like this is likely from a person who is a marketer of sorts. They are typically on the “digital” team figuring out how to drive new sales through channels such as websites, social pages, and online marketplaces. I believe it is important for the entire organization, not just marketing, to have a digital mindset.
A digital organization is one who effectively uses technology to connect every part of its business, including sales & Marketing, Finance & Accounting, Operations, HR, and IT.
Workflow and tools supporting a digital organization should address the following processes:
I am of the opinion that accounting is the hub of a digital organization.
In a perfect situation, there would be one tool that does everything a business needs and wants. Maybe one day we’ll be able to get that from Amazon, but for now, most companies string together multiple software platforms to strive towards a connected, digital business model.
Given the current constraints of this commonplace scenario, companies often look to tech savvy advisors who can put the puzzle together.
For the accountants reading this article, the list of core business processes above should look familiar to you, especially if you have an audit background.
I present this list to you so you can start to think about how to optimize each process for the purpose of becoming a digital organization, improving your enterprise value and overall profitability as a result of efficiencies gained through connectivity.
This is a visual I created as I have been developing curriculum for sales teams to be able to sell digital advisory work. I love this image. It shows how those core processes all fit together.
These components I have chosen here (sales, bills, and payroll) are often hosted on different platforms and all connect with the accounting ledger. Once reconciled, reports either come out of the accounting ledger or are pushed to another dashboard for management consumption.
If you are trying to figure out how it all fits together, I recommend you to stash this mental image.
As you or your clients consider implementing new procedures, you can either get separate tools to handle each of these core processes, which each have their own price tag, or, you can find a more robust platform that has more capabilities, although comes with a higher per user per month fee.
But do not be fooled, there is no such thing as a perfect set up; there are always quirks, no matter how much you spend or don’t spend. Accounting will always be a chore, and it can not be ignored.
By recognizing that the accounting and finance arm of your organization has the ability to become a true business partner to sales and marketing teams, your company can obtain valuable business intelligence historically only attainable by large players.
Each Links Advisory client is constantly evolving into a digital organization. Clients will always find themselves in at least one of four quadrants: correct, sync, manage, or plan.
If you’d like to find out how you can become a more efficient and profitable organization by evaluating your digital organization journey, reach out anytime.
