Posted on Dec 15, 2008 in Operational No Comments »
If a vendor mails both individual invoices and monthly statements, then remit payment based on the monthly statement amount. It is easier to track, will create less confusion and likely involve fewer payment misappropriations. And make certain you attach each individual invoice and related purchase orders, if applicable, to the monthly statement and separate payment [...]
Posted on Dec 15, 2008 in Operational No Comments »
In this day of payroll outsourcing and low interest rates, it doesn’t make sense to have more than one operating bank account. You gain greater control and reduce bank errors. And know your cash balance with a single glance accompanied with no math.
Posted on Dec 15, 2008 in Operational No Comments »
Dipping into available bank LOC financing is a smart way to meet operational demands as they arise. Smarter then pushing A/P payments to vendors out another week. Smarter then paying management a day or two after other staff. Smarter then hounding long-time routine customers for accelerated remittance. Line of credit financing is an economic and [...]
Posted on Dec 15, 2008 in Operational No Comments »
Gain an understanding of the components of cash flows from operating activities (core business), cash flows from investing activities (asset purchases and disposals) and cash flows from financing activities (debt and equity transactions). Knowing how these three separate components of cash flow interact with each other will make acquisition and infusion decisions seem straightforward.
Posted on Dec 15, 2008 in Operational No Comments »
While individual segregated accounts outside of the main trust company may make financial sense, for accounting purposes, it raises costs and sometimes leads to lost assets. Therefore, select a large full-service trust company to meet numerous investor needs and keep plan assets under one roof.
Posted on Dec 15, 2008 in Operational No Comments »
Save all the documents you generate or receive related to customer credit card receipts. Always tie the various pieces together on a regularly basis to make certain you receive the funds rightfully owed. Errors occur due to the sheer volume of credit card payment activity the card issuers encounter. Double-check their accuracy.
Posted on Dec 15, 2008 in Operational No Comments »
There is no right or wrong answer here. However, consistency needs to be applied over time and a clear understanding of the differences between these two types of infusions must be attained. And most importantly, appropriate documentation must be completed in order to eliminate potential questions about the type of infusion selected.
Posted on Dec 15, 2008 in Operational No Comments »
Rarely is capital lease financing the way to go. The interest rate is generally high, hidden fees abound and end-term buyouts hit snags. So before a decision is made, please run the computation to determine the “true” interest rate assessed and review the contract closely for fee and buyout arrangements.
Posted on Dec 15, 2008 in Operational No Comments »
It is crucial to keep board meetings focused on company direction. All to often board meetings become extensions for micromanaging departmental concerns. Each company group has distinct responsibilities in an effort to achieve company goals – board of directors, owners and management. Therefore, it is an excellent idea to solicit some outside influence to sit [...]
Posted on Dec 15, 2008 in Internal Controls No Comments »
Not a cure-all, but a wise practice that will highlight unexpected item cost changes, glaring shipping errors and instill controls to prevent misappropriation. An appropriate party should approve all orders while all corresponding documents should be saved – purchase order, packing slip and vendor invoice. Everything must match and discrepancies duly noted.
Geoff Goudy: The Certified Public Accountant Colorado Businesses Trust.
Serving Northern Colorado including Fort Collins, Greeley, Loveland, and Wellington.
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