Rectification must be a rarely used tool!
Errors in accounting are common and some errors cannot be avoided. However, when the accounts team spends the maximum time rectifying the errors, it is time to look at the process and rework it. Rectification results in the same activity being done twice which as per the lean process is a waste of time as no value is added during the rectification of errors. The volume of errors also indicates the productivity and efficiency of the team. Rectification must not be a regular activity and must warrant stringent approvals so as to curb the practice. Lean accounting as a process looks at deriving maximum value from an activity and rectification is definitely a deterrent to the process.
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