Posts Tagged ‘internal controls’

Reducing Inventory Means Just That

Reducing inventory means just that may sound like a silly statement, but you’d be surprised how much sillier responses may be.

A Little Background

A number of years ago I took on a new client that I later discovered was in serious Read the rest of this entry »

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Necessity of Backups

If you are anything like others, you have undoubtedly experienced the loss of data as a result of an equipment failure or an error. For example, if you work with Microsoft Excel you probably have been working on a spreadsheet and put off saving it. Then there is a power failure and you computer crashes and you lose something you have been working as well as the time devoted to it.

It Can Be Worse

Losing an Excel worksheet is frustrating, but is gets much worse. Suppose you are Read the rest of this entry »

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Financial Problems are Multi-Level

So you find your company’s finances tight and you think you know the reason, but do you? Maybe you do, but maybe you don’t.

A Quick Example

Imagine this financial tightness is experienced primarily through always having to battle to have sufficient cash. You have identified the cash shortage as your main issue; and on the surface that may well be true. But, upon closer examination you might find that the cash crisis is merely a symptom. This kind of issue is usually multi-level, involving other things that are producing the symptom(s).

Some Examples

Generally, financial problems, including tight cash positions, are more than Read the rest of this entry »

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Triage for Business Issues

We’ve all been there. It seems like the issues we are facing are overwhelming. We just cannot decide what to do next. How do others handle this?

The Concept of Triage

You’re probably somewhat familiar with the concept of triage in the medical field. In the event of a major disaster medical personnel must divide casualties into groups. Basically those groups determine who gets treatment and in what order. In a sense it seems unfair, but without it many might die who had an excellent chance of recovery.

How this Relates to Business

In business the issues and decisions facing us daily can overwhelm us if we lack Read the rest of this entry »

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Is That Really the Truth?

We live in a time when we are inundated with news, facts, figures, claims, statistics, and other information. This growth in available information is accelerating as the methods of spreading it are added. We now have word of mouth, mail, email, websites, Google and other search engines, Linked In, Twitter, Pinterest, Google+, and the list continues to grow. In fact the available ways to send and receive information can be overwhelming.

But There’s a Problem

With all the information with which we are bombarded, how can we tell what is true, and even if true is it valuable? First, what is truth? I once heard a definition that I think is helpful. Truth is anything (symbol, word, etc.) that corresponds to reality. So, for example, the word light corresponds to the reality we know at light, and likewise the word two or the symbol 2 correspond to a particular value we know.

The Problem is Truth Claims

Each day we hear numerous statements, some of which Read the rest of this entry »

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A Company Diet

You may be wondering what I mean by a company diet. Have you ever had the experience of stepping on the scales, then being in shock at your weight gain. It seems as if the pounds came from nowhere, in essence just creeping up on you. However, if you were to take some time to think about what you have been eating, look at your exercise routine, and consider if you are getting adequate sleep, you just might be surprised that your weight gain is really no surprise at all.

A Company Weight Gain

Okay, I know we don’t weigh a company, but actually something goes on in most companies similar to Read the rest of this entry »

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Check Your Assumptions

Assume your business is just humming along. There are no major problems, yet you sense that things could be better. You’ve noticed that things are not working exactly as planned – oh, again nothing major, but just little breakdowns. On top of that, there is beginning to be a loss of camaraderie and disagreements that never seem Read the rest of this entry »

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Cash Flow–The Bottom Line

In the 1986 move Jerry Maguire, there is a famous line, “Show me the money.” Actually, when ever I read or hear about how profitable a business is, that line comes back to me.

Cash or Profits?

While there are any number reasons a company may fail, one of the most common is falling short of cash – that is insufficient positive cash flow. In fact, on paper some companies are very profitable yet they still fail. On the other side of this same coin, some companies remain unprofitable for an extended time and still survive because they possessed adequate cash flow. Of course, let’s be realistic here – a company cannot continue forever being unprofitable. But, profit alone is not enough. Read the rest of this entry »

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Purge, Purge, Purge

I recently posted a blog called Organize – Everything in It’s Place. In that I discussed the importance of staying organized, of having a routine time to do this, and some methods to aid in the process.

Okay, I’m organized. Now What?

If we have stayed on top of our organization we will soon notice that we accumulate an incredible large number of files. We all know that they are not all useful or needed, but just looking at them makes us want to Read the rest of this entry »

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Organize – Everything in It’s Place

It may sound unusual for someone from a structured background like finance and accounting, but I’m one of those people who by nature do not like to organize things like paperwork. Don’t get me wrong, the initial task is not what I mind, but rather the maintenance required for staying organized.

Do It Anyway

The bottom line is I do it anyway. Not that I’m as neat as many others, but I recognize the need to keep a fair degree of organization.

A Simple Method

Recognizing that many of you are like me and tend to postpone this task, I have found that there are a few little secrets that help. Read the rest of this entry »

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