Although building and growing a business is a challenging effort, no doubt about it, many companies make it a much more difficult process by ignoring basic good business practices. Below is the beginning of a checklist of some of those activities. In future blogs, I will address each of these items in this growing list…..
But for right now, if you are a business owner and either say “no” or “I don’t know” to any of the following, I have to tell you – You are making this a LOT harder than it has to be!
- Are getting out invoices on time and as quickly as possible one of the highest priorities in your company?
- Is there an independent verifiable process to ensure that 100% of invoices go to the client in a timely manner?
- Is your AP turnaround low and your AR collections high?
- Do you use the Accounts Payable facility to manage your bills?
- Do you close the month within 10 days of the end of the month and run (AND REVIEW) regular reports and metrics?
- Do you know how your business model is set up to perform and how you actual performance compares?
- Does balancing your check book take more than 10-15 minutes?
- If you use Quickbooks and track time, are you maximizing the power of the time tracking ability?
- Are you using spreadsheets to track information?
- Are you using your accounting system as a transaction recorder or as an accounting system?
- Do you know what your breakeven is?
- Do you run payroll internally or use an outside payroll service?
- Does the owner take a vacation and make sure that staff take vacations?