Each and every business needs internal controls and procedures. Having the right internal controls and procedures in place for your business empowers team members and enables them to make ethical and honest decisions for your business. Controls and procedures does not need to mean more red tape, slower decision making or duplication of efforts; in fact it can be quite the opposite.
By creating an environment whereby your team can work within a designated framework of internal controls and procedures it can create a much more efficient way of working. By getting the internal controls and procedures right leads to a smooth and efficiently run business enabling your empowered and loyal team to dedicate more time to your customers.
Cash flow is important to every business and by targeting effective debt collection a reliable inflow is maintained. Many business leaders see sales as the key focus and targeting effective debt collection is pushed aside. Businesses fail due to inadequate targetted debt collection.Targeting effective debt collection does not mean just putting accounts on stop or "Sales Prevention".
There are many skills to targeting effective debt collection, a key one being the relationship between the credit control of your organisation and the purchase ledger of your customers. Targeting effective debt collection also gives a business the means to grow and expand without necessarily requiring outside finance which can be expensive. Please contact us if you would like to discuss targeting effective debt collection within your business. Good debt collection is customer service within your business keeping those lines of communication open.
Every business should prepare budgets and forecasts at least once a year. Budgeting and forecasting is an essential part of any business and scenario planning process, as well as being a key risk management tool. A budget is the expectation of what a business would like to achieve and is usually prepared and agreed prior to the start of the new financial year. This is a document looking at all the revenue streams, cost of sales and overheads in detail, as well as reviewing cash flow and any major expenditure for the business. A forecast is an estimate of what will actually be achieved, typically it will be limited to only a review of major revenue and expense lines, cash flows may be updated too.
Forecasts are updated at regular intervals such as quarterly or when there may be short-term operational considerations. The key difference between a budget and a forecast is that the budget is a plan for where the business wants to go, while a forecast is the indication of where it is actually going. By setting budgets and forecasting management teams are able to measure whether the business is achieving its goals, if the business is not achieving its goals then it offers the management team an opportunity to take remedial action to get the business back on track.