One of the biggest systems opportunities for services organizations today is to build their technology environment around an Operational System of Record (OSR). By bridging core planning, executional, accounting, and analysis systems in a single operating environment, organizations are able to experience dramatically better visibility, predictability, and agility while also gaining greater understanding and control over their finances.
This digital infrastructure can also become the heart of the organization and improve processes by packaging up best practices into frameworks, guidelines, analytics, and insights required to successfully operate a fast-moving services firm. Building your tech stack around an OSR is the quickest way to digitize a services business and increase its strategic impact by modernizing day-to-day operations.
While unifying all critical functions of services delivery in a single source of truth will help professional services organizations operate with greater precision, it is critical that businesses connect their Operational System of Record with their General Ledger (GL). Without proper integration, this critical Financial System of Record can miss items that impact your company’s bottom line.
What is an Operational System of Record?
An OSR is designed to help businesses manage and analyze customer interactions and data throughout the customer lifecycle by integrating the various solutions used throughout an organization. As such, an OSR can help organizations better align sales, delivery, and financial teams. Specifically, an OSR is designed to strengthen the various systems of record already in use by a company.
There are 4 key system of records:
- People System of Record
- Customer System of Record
- Financial System of Record
- Operational System of Record
The Financial System of Record is most often your General Ledger - helping to keep detailed account of every transaction made within the business. By making the Operational System of Record the core of the modern services tech stack, other systems will orbit around and connect through this core system for a more unified and coordinated flow of information between solutions. That includes the many different tasks and expenses generated by various solutions and resources, which will be directed toward your ledger.
The Benefits of Connecting Your General Ledger
A company’s General Ledger is meant to be a comprehensive collection of all financial transactions and decisions. At the same time, an Operational System of Record is designed to comprehensively coordinate, connect, and support the many different systems used in daily business processes. Connecting your GL and OSR means that the financial records your accounting department depends on to keep the company profitable will include decisions both large and small for detailed financial planning.
Additional benefits include:
- Syncing projects with resources to determine the total cost of a project based on the people assigned to it.
- Creating detailed connections between expenses and tasks to determine where costs can be reduced for higher project margins.
- Estimating project cost and comparing against actuals for strategy refinement.
- Processing fast and accurate billing for clients upon completion of projects or phases of projects.
- Connecting communication channels with the GL so that needed financial information can be provided quickly and easily to resources.
- Better understanding of company-wide revenue connected to each department and the profitability of the different types of services they provide.
The combination of precise financial records with granular control over business processes through an Operational System of Record means that your company can continually finetune for greater profitability and make informed financial decisions.
Learn More About Operational Systems of Record
Operational Systems of Record are changing the way services organizations run their businesses. Learn more in our ebook, “Transforming the Services-Centric Tech Stack.”