How to Conduct an Operational Audit After Implementing New Software

What Is an Operational Process Audit?

The goal of an operational process audit is to assess the effectiveness, efficiency, and compliance of current processes while identifying opportunities for improvement.

In short, it’s a systematic and thorough evaluation of the various activities, procedures, and operations related to the implementation of new technology within a company.

Identifying Key Processes

Start by identifying your company’s key processes. These may include:

• Project financial management and reporting
• Time and expense tracking for internal resources and external suppliers/subcontractors
• Invoicing processes
• Accounting and payroll integration with other software systems

Data Collection

For each key process, gather relevant information and data to understand how it currently operates. This step provides a detailed picture of ongoing operations and helps assess strengths and weaknesses.

Recommendations and Action Plan

At the end of the audit, recommendations are made to improve your company’s operational efficiency.

These may include training plans to strengthen user skills with the newly implemented software. Specific actions such as customizing invoice templates, configuring reports, or enhancing the software may also be proposed to further optimize operations.

Why Conduct an Operational Audit?

An operational audit helps identify weaknesses and propose concrete recommendations, contributing to improved efficiency, security, and overall business performance.

Here are some key areas the audit helps evaluate and improve:

Operational Efficiency

Through a process audit, managers can identify bottlenecks, redundancies, and inefficiencies that may hinder operations. They can also uncover operational risks such as:

• Loss of software knowledge due to staff turnover or resistance to change
• The temptation to explore new tools without first assessing whether the current software can meet evolving needs—leading to fragmented systems and duplicated data entry
• Validation by a team of experts ensures that the software evolves with your company’s growth and continues to support it effectively

By implementing the audit’s recommendations, the company can streamline workflows and boost team productivity—saving time, reducing processing delays, and delivering better service to clients and stakeholders.

Performance Monitoring with Key Performance Indicators (KPIs)

An audit can also help define relevant KPIs to regularly assess business performance. These indicators allow managers to track progress after implementing audit recommendations.

Reports generated from collected data provide a comprehensive view of company performance, helping managers make informed decisions and continuously optimize processes.

Potential Challenges of Process Audits

Operational process audits can present certain challenges, including:

• Resistance to change
• Costs
• Required resources
• Difficulty implementing recommendations

These factors must be carefully considered. Managers should identify and engage key internal resources to effectively participate in the process analysis and implement the proposed recommendations.

The Many Benefits of Operational Process Audits for Managers

Process audits are an invaluable resource for managers, helping them uncover key areas of the business that can benefit from significant improvements.

Here are some concrete examples:

Project Management Process Improvement

• Project-based approvals: Ensures that timesheets and work-in-progress (WIP) expenses align with the budget and clarifies what should be invoiced by accounting 
• Cost tracking: Enables better monitoring of project costs 
• Billing process improvement: Validates billable items using detailed WIP reports, ensures all WIP is invoiced, and facilitates faster invoice approval by project managers—allowing invoices to be sent to clients more quickly

Resource Allocation

• Resource availability: Helps visualize availability and plan new projects accordingly 
• Capacity management: Assesses the ability to manage ongoing projects with current resources

Reporting

• Profitability tracking: Monitors project profitability by controlling budgets, revenues, and expenses 
• Performance indicators: Tracks KPIs and statistics using summary reports by project; also enables custom reporting via the CUBE report 
• Custom dashboards: ABAK’s API allows for the creation of personalized dashboards using Microsoft 365’s Power BI

In summary, conducting an operational audit after implementing new software like ABAK is a key step in maximizing the use and benefits of this powerful project management tool.

By identifying areas for improvement and applying the audit’s recommendations, companies can significantly optimize their processes, increase efficiency, and make data-driven decisions.