Posts Tagged ‘internal controls’

Income Taxes, Bureaucracy, Policies and Procedures

Having just finished my personal tax return, I am reminded why Income Tax Preparation and Planning are services I have never had an interest in providing. There are two reasons why:

  1. My belief is that this service is specialized and should be handled by someone who makes it their specialty
  2. I also believe the U. S. Tax Code is absurdly bloated and complicated, causes countless wasted hours to comply with, and in the end is non-productive

Increasing Complexity

Like the U.S. Tax Code, over the years companies have a tendency to add layers of bureaucracy and increasingly complex procedures. If you own a company or have worked somewhere for an extended period, stop for a moment and look back to what the company was like when you first started. Chances are things were a lot simpler and perhaps more efficient. Read the rest of this entry »

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Why You Never Hit Budget

I can recall numerous times where management had a meeting to discuss financial results.  Here is a typical interchange from one of those meeting.

Company President, “Why are promotion expenses twice what was budgeted?”

Marketing Head, “That can’t be correct.  Accounting recorded something wrong.”

Controller, “We have carefully checked every item.  I can get you the detail.”

Company President, “What do we have to do to stay within budget?”

A Conversation Going Nowhere

Have you ever been in a meeting where the conversation was similar to the above?  Did people get defensive, take sides, or even pass the blame in the form of, “You didn’t control your spending” or “You recorded something wrong” or “We budgeted too little.”  Interesting, all of these comments revolve around Read the rest of this entry »

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Don’t Let Accounting Kill Sales

Have you had an experience similar to this?  A few weeks ago I returned some items for which I had paid cash.  The person at the return desk scanned my receipt, got out the correct amount for the refund, and then Read the rest of this entry »

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