Internal Controls over Payroll

Payroll costs are a significant cost for most Entrepreneurs. What type of internal controls have you established over the entire payroll processing process?

Some of the questions to ask – who sets up new employees, how are pay rates established and changed, who approves hours worked, is there a process to authorize overtime, who reviews payroll, is payroll reconciled, how are paychecks distributed?

Establishing internal controls over payroll processing is necessary to control this significant cost area.

Ravi Patel

www.patelCFOservices.com

The 2% Solution

A Controller at a client’s company has coined a cost savings initiative – The 2% Solution – that is worthy of consideration by Entrepreneurs.

The concept is fairly simple. Any significant expense line item in a company can be dissected, analyzed and streamlined to save at least 2%, if not more. According to this Controller, saving 2% is a “slam-dunk” and can be implemented by any company.

Entrepreneurs might want to consider “The 2% Solution” for their companies.

Ravi Patel

www.patelCFOservices.com

Implement New Ideas

Entrepreneurs might want to make a new year’s resolution.

Building a company focused on continuous improvement, Entrepreneurs have to strive in their organizations the need to constantly evaluate processes and make changes to enhance them.

Related to that Entrepreneurs might want to have a goal of implementing company-wide a new, significant idea periodically, minimally every quarter. Doing so will set an example in your company that you are focused on improving operations and introducing new ideas.

Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Are you Invoicing Correctly?

Entrepreneurs should focus on working capital management for their businesses and a key component is reducing their DSO.

A key component that affects DSO is the accuracy of your invoices to customers. Is your invoicing process reliable, accurate and consistent?

The invoicing process should not only be consistent and timely, but it should also be accurate. If your invoices do not reflect the system needs of the customer, it will delay the payment process affecting your DSO. Ensure that the invoice that you send to each customer reflects the requirements of the customer to pay on a timely basis.

Audit and streamline your invoicing process to reduce DSO.

Ravi Patel

www.patelCFOservices.com

New Beginning

As you take on 2010, it is time to take a “Balance Sheet Review” of your business; not the true accounting numbers kind, but philosophically similar.

Entrepreneurs should evaluate their “assets” in the business – products/services, people, customers, processes, etc. This should establish the strengths of your business to either build upon or further improve in 2010.

A determination of your “liabilities” will give you an idea of the weaknesses that need to be focused on in 2010. These “liabilities” need to be mitigated or converted to “assets” so that you can utilize them for success during the year.

By performing a “Balance Sheet Review,” Entrepreneurs can set their priorities and goals for 2010 – a new beginning!

Ravi Patel

www.patelCFOservices.com