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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
: |
www.cfoplus.net
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Employee
Performance
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In business,
companies that figure out how to take products or services to
market in the most efficient, profitable way will win. The road of
business is populated with companies that, somewhere along the
way, lost sight of these basic principles. Aligning employee
performance to company goals is key to outperforming the
competition. Given all the other matters for daily consideration,
how do you do this effectively and consistently?
While the steps to link performance to the achievement of your
company goals may be the same, no two companies are alike. You
must take the principles of performance and craft a system with
complementary programs for each employee level. A performance system
describes the general policies and parameters for the
administration of the company's performance programs.
Before business owners and managers can set specific, measurable
performance goals, they first must decide the company's overall
objectives. Once this is determined, a performance system can be
developed.
The core components of a performance system include:
- Vision -
What is the company's vision for delivering its
product or service?
- Strategy/Plan to
Achieve the Vision - What is the plan for
the company and individuals to help achieve the
vision?
- Organization -
What is each person's role within the
organization and what accountabilities are involved?
- Expectation of
Performance - What is the perceived level of
performance for each employee?
- Individual Goals
- What individual goals need to be met to
achieve company goals?
- Training/Development
Programs - What training/
development programs will help individuals
accomplish their goals?
- Reward/Incentives
- Which rewards/incentives will be most
effective and when will these rewards be given to
employees after goals are met?
- Measurement -
Which metrics will be used to measure
performance, and are those measurements tied back to
goals?
- Continuing
Improvement - In which areas can the company
and/or individuals make improvements or reductions
to further company goals?
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The second part of
the process that links employee performance to your company goals
is the performance program - the specific procedures,
methods and requirements for planning, monitoring and rating
performance. Whether you have one employee or 10, the systematic
steps to linking an employee's performance with the part s(he)
plays in meeting company goals are the same.
Steps to link employee performance to goals:
1. Set specific, measurable performance goals for
individuals
and groups.
2. Ensure each employee knows company goals and how
his/her performance affects achieving those
goals.
3. Discuss the many ways goals are achieved and the
performance implications of each.
4. Develop incentive systems that reward employees for
positively contributing to the achievement of
company
goals and clearly explain how performance is
measured.
5. Reward immediately and, if possible, customize rewards
for
employees.
At first glance, these steps seem simple and straightforward - and
they can be. However, some managers and business owners
find themselves in trouble as they develop different performance
programs for various levels of employees throughout the
organization. For example, in a manufacturing plant, a program for
managers would be different than one for plant employees because
individual objectives are different. Managers, perhaps, would
focus on managing their budget, whereas plant employees may focus
on decreasing safety incidents and decreasing defects. Keep in
mind that group goals work so that manager and employee goals come
together to achieve company objectives.
When performance programs are implemented, companies need to
ensure that individual goals do not conflict with group goals. An
example of a conflict could be where employees are rewarded for
outputting more product than other employees, and instead of
working together so that the whole group achieves more, each
employee adopts a dog-eat-dog mentality. Business performance
advisors rely on a methodical approach that ensures balance across
individual and group goals. A strong performance program takes
into consideration individual, group and company goals.
Successful implementation of a performance system starts with
clear communication. Follow these guidelines to ensure
communications are specific and targeted toward company goals:
Make company goals known and visible within the workplace.
From the day an employee starts to everyday interactions, company
goals should be clearly communicated and displayed in some way
throughout the workplace. For example, if decreasing safety
incidents is the goal, a poster showing how many days have passed
without incident serves as a reminder of the goal. Publishing
highlights of employee successes in the company's internal
newsletter or on its Intranet also spotlights goals and rewards of
those who help achieve company objectives.
Relate each goal to the job.
If the company goal is to hit a certain sales number by the end of
the year, for example, ask employees what they can do to increase
qualified leads or what sales strategies they can think of to
impact total sales. Each employee should meet with managers to
develop individual goal plans and, likewise, managers should meet
with company owners or executives to develop similar plans.
Link company goals to individual motivators.
Each employee has his or her own unique motivator. For some
individuals, money is motivating and for others, time off is
prized. The more often a company can link individual motivators to
the achievement of individual and group goals, the more successful
your performance processes will be. For example, some companies
offer employees three choices as they reach individual goals:
bonus pay, time off or points that may be used to purchase
merchandise, including airline tickets.
Ensure communication flows both ways.
Managers need to meet with employees to hear feedback on the
performance process and to ask if goals are understood. Employees
need to provide information that will enable managers to make
changes so that the program is more effective. Research indicates
that employee involvement can be an indicator of how successful a
performance program may be. Invite employees to contribute ideas
that help achieve company goals.
Deliver rewards immediately.
The more immediate the reward, the more reinforcing it is for the
behavior it is rewarding. Whether you use honorary awards
(symbolic), informal recognition awards (no monetary value) or
formal recognition awards (bonus, time off or other specified
reward), the more immediately you can award it to the individual,
the better your chances are of motivating that individual to
repeat the desired behavior.
Offer training and development that helps managers and
employees achieve goals.
The best of intentions can't overcome lack of knowledge or skill.
On the other hand, if employees don't have the skills to achieve
goals, then frustration can result. For example, if employees seek
to increase telephone sales, telemarketing training may help them
achieve this target. You can't measure an employee's knowledge
without providing tools or training, and managers who rate
employees without providing these tools are setting themselves and
employees up for failure.
Linking employee performance to company goals isn't easy, but it's
well worth the effort. With balanced performance processes,
companies reach overall objectives as employees achieve individual
and group goals. And since individuals are not rewarded until
goals are met, the company's bottom line grows incrementally along
with rewards. Performance programs and systems can be found in
successful companies that have discovered linking employee
performance to company goals is good for business. Business
performance consultants can walk you step by step through the
implementation of these programs. Contact your business
performance advisor for more information about how your company
can put performance programs to work. |
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Outsourced CFOs are Smart for Business |
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
|
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
: |
www.cfoplus.net
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Running a business takes many skills
sets, and business owners, eager to keep costs in check, try to do
it all. From hiring decisions to compiling financial statements,
owners spread themselves thin running from task to task. The
upside? There's no large salary tied to people holding specialized
positions. The downside? Each task gets but a fraction of
the time it deserves - and requires.
According to the Harvard Business Review, outsourcing is
one of the most important management ideas and practices of the
last 75 years. Companies using outsourcing cite innovation as
their number one reason for bringing in a fresh perspective to key
company functions. Business owners and executives say they derive
these four benefits from outsourcing:
1. Outsourcing allows companies to focus on what they do best -
their own core competencies.
2. Companies achieve greater efficiencies without adding people or
technological resources.
3. Outside expertise helps companies become more profitable,
thereby increasing company or shareholder
value.
4. Outsourcing offers increased service levels within company
functions.
One of the most critical functions in a company - especially one
transitioning through one of the growth phases - is that of the
financial officer. A Chief Financial Officer (CFO) typically
focuses on how efficiently a business is operating. While some
business owners view this function as a reporting function - one
where the CFO merely is a score keeper of how well the business
already has performed, that's just where CFO duties begin.
A CFO takes the historical financial data (also known as financial
statements and other typical recording reports), combines that
information with operating practices, and analyzes areas where the
company could - and should - make changes that affect
profitability, productivity and efficiency. The CFO with top-notch
business sense can dramatically impact a company's bottom line.
Companies nearing the half million up to the $5 million revenue
mark often find they can benefit from the services of a seasoned
CFO, but can't - or don't want to - afford the $125,000+ these
professionals typically demand for a salary. Some business owners,
realizing that they do not have the resources to hire a full-time
CFO, simply accept this and vow to grow their businesses so they
can hire a CFO in the future. Smart business owners recognize that
if they want to reap the benefits of an experienced,
results-producing CFO, they must look for a more creative way to
do it.
These smart entrepreneurs regularly make outsourcing work for
them. They understand the importance of leveraging their money
while obtaining critical tools for success. Many times, the cost
savings accompanying qualified CFOs makes the decision that much
easier.
Outsourced CFOs sell their time by the hour or on a monthly basis
-four to eight hours a month, for example, at an agreed-upon fee.
CFOs can isolate areas of concern that the business's accountant
wouldn't (and possibly couldn't) detect until tax time. Even the
closest accounting advisor isn't privy to day-to-day business
practices.
CFOs can have a positive affect on the outcome of major business
decisions. For instance, companies facing reorganizations or
mergers need to have access to real numbers associated with these
events. They also need to know how to leverage available resources
with company debt. Skilled CFOs handle these issues regularly and
can bring much-needed expertise to company owners and executives
as they make short- and long-term decisions.
Other areas offer opportunities as well. Purchasing agreements
sometimes can hurt the well-intentioned company manager. If a
company makes larger purchases because of negotiated lower prices
on products and the trade off is a shorter pay schedule, CFOs can
isolate this scenario as the key reason why a company could
constantly be in a cash crunch.
Finding a qualified CFO may be as far away as a phone call to your
CPA or accountant who offers outsourcing as a credible service
component for companies like yours. Today, some firms offer the
services of experienced CFOs who have retired and now work as
temporary workers - much like you would hire a secretary on an as
needed basis. Whichever route you take, financial matters aren't
the only areas where an outsourced CFO can lend advice. CFOs can
help your business in several critical areas including:
· choosing appropriate accounting software,
· deciding whether leasing or buying equipment is best,
· how to compensate company officers,
· how to handle company collections,
· how to handle cash flow and how to balance company debt
with
receivables, and
· how systems can be improved to improve productivity.
While hiring a CFO for a short amount of time may get you past a
cash flow crunch, help secure a much-needed loan or initiate
systems that increase productivity, experts agree that to get the
most out of your investment, you should commit to your outsourced
CFO arrangement for at least a year. An experienced CFO often can
impact your business in less time than an average work day or
approximately eight hours.
If you are a business owner currently functioning as CFO, think of
all the things you can do with your leveraged time.
· Spend time with valued customers to ensure their
continued
business.
· Attract and win new business.
· Develop new products or services.
· Work on operational or financial projects to make your
business
more profitable or accelerate its progress toward your
growth
goals
Bottom line: the choice to outsource comes down to dollars and
sense. When companies add a CFO's salary to a benefits package
complete with annual bonuses, the price tag is high. And, not all
CFOs are equal- navigating the maze of available CFOs can leave
you dazed and confused. Keep in mind that CFOs possessing business
performance management knowledge add an extra dimension that
positively affects other areas of your company, including
productivity, operating efficiencies and internal systems.
It takes time to make the decision to outsource a critical
management position. Aligning company growth goals with the
operating budget, and comparing that to the benefits an outsourced
CFO can bring to the picture, enables you to determine if
outsourcing is right for your company. If you still aren't sure,
call your accounting business advisor to discuss the pros and cons
of this type of arrangement.
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Winning the Cash Flow Battle |
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![](images/logos/blue.gif)
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
|
|
Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
|
Website |
: |
www.cfoplus.net
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- a Simple, Effective Strategy
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Think back to the
time when you were young. Remember when you saved your allowance,
did odd jobs or relied on Grandma to give you the money to buy
that really special baseball card or polka-dot hair bow? Your
parents probably were supportive, yet benevolently instructive
when they stressed, again and again, the benefits of income and
savings.
What they may have failed to mention were two words that
complement the entire scenario - cash flow. If you had proper cash
flow, you would have enough money ready to go and ready to spend,
instead of reacting to a potential purchase by trying to come up
with the pocket change.
Today, the way we manage our businesses really isn't any different
than this somewhat dated scenario, yet companies sometimes forget
about cash flow. The results can often be disastrous.
Think, for example, of the dozens of failed dot.coms in 2001. So
many businesses banked on venture capital funds, spent the money
on inventory, assets, employee salaries and had nothing left in
reserves. It wasn't uncommon to walk into a hip and happening
Internet retailer on the west coast only to find three people
doing the job of one.
With so many rainy days dampening the sunny ones, these companies
were forced to lay off staff and eventually close their doors,
resulting in thousands of unemployed workers.
If these companies had relied, instead, on the cash flow process,
they may have been able to survive, albeit without that extra
espresso machine or rock climbing wall..
Increase the Speed
Cash flow refers to the movement of cash in and out of your
business. Whether you sell widgets or windows - and are General
Electric or a small- to medium-sized business - money comes into
your business in the form of cash received from customers at the
time of the sale. It also includes cash received from accounts
receivable and income from other activities, including sales
commissions.
If cash flows in, it's got to flow out. Cash flows out of your
business to finance everything you purchase to actually run the
company: inventory, raw materials, payroll, expenses, rent,
utilities, interest on loans, equipment lease payments and
accounts payable on trade credit that other businesses have
extended to your company.
The key to improving cash flow is an economic concept we all
learned, but perhaps ignore: simply improve the speed of money
flowing into your company while decreasing the rate at which money
flows out. For the entrepreneur or small business, this may mean
pre-billing for any work incurred, or delaying expenses until
necessary. Larger businesses with employees may want to undertake
similar tasks ... only on a larger scale.
Paint by Numbers
The missing link, therefore, is timing. Mark Deion, president of
Deion Associates & Strategies, Inc in Warwick, R.I., says you
could go out of business waiting to get paid.
"For example, it costs you $100,000 to produce something and
a customer is willing to pay you $1 million," he says.
"We would agree that $900,000 is a great profit margin, but
what if you have to pay the $100,000 in December and your customer
isn't going to pay you until April?"
While there are many theories on how to achieve cash flow success,
most financial advisors agree on a multi-step approach that
encompasses a variety of simultaneous techniques. Here are six
steps for consideration.
1. Establish a receivable process. You can improve
your chances
of receiving timely payments from your customers by
setting up
an A/R process to record sales, generate invoices and
monthly
statements, and track your customers' current and
past-due
balances
2. Forecast cash flow. Study your customers' paying
habits so you
can begin to predict when and how much they'll pay.
Analysts
say the amount you forecast should be within five
percent of
your monthly receivables. If your predictions are
dramatically off
schedule, a cash flow problem could be looming.
3. Track expenses. Each month, compare projected
expenses to
actual expenses. This will help you anticipate
the need for more
cash and react immediately. For example, if you
unexpectedly
have to repair broken machinery, you can cut
expenses
elsewhere or take an advance on a credit line.
4. Project sales. It's easy to assume the demand for
your products
and services will be high, but it's safer to
base your projected
sales on facts rather than assumption. When you
project
accurate revenues for a specified period, you
can spend
accordingly. It isn't magic; just common sense.
For example, use
past experience to project future sales, and
talk to your
customers or clients to determine their future
needs.
5. Track sales. Even after you've projected sales,
monitoring
actual sales ensures you're on the right track.
If sales dip below
projections, the sooner you make adjustments,
the better.
Adjustments include cutting expenses, extending
credit or
borrowing money.
6. Prepare for cash flow imbalances. Nothing is ever
100 percent
steady, and for many businesses, it's more than
normal to
experience cash flow fluctuations throughout
the year.
Anticipate when your sales are likely to drop,
then ensure you've
put cash aside to cover your expenses during
the lean months.
No matter what your company's situation may be, the overriding
advice from finance professionals is to seek help from those who
know. If you don't think you can manage your company's cash flow
yourself, hire a professional who can handle your cash flow needs.
And, remember, cash flow isn't about crunching numbers, it's about
managing your company so that you won't find yourself in a cash
crunch.
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
|
|
Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
|
Website |
: |
www.cfoplus.net
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Business Roundtables
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As a business owner,
how often do you have the opportunity to talk one-on-one with
other owners or executives about ideas? Many small- and
medium-sized company owners and executives frequently feel they
are working in a vacuum because they rarely have the opportunity
to exchange ideas with peers and other professionals. Business
roundtables enable owners to cash in on the roundtable's pool of
experience and the expertise of skilled facilitators.
Roundtables typically are comprised of business owners and CEOs
who come together to share ideas, discuss challenges or concerns,
and to learn new ways to approach old problems. They are different
than advisory boards that bring a group of professionals
representing different areas of business together to assist one
company in making decisions and to offer advice in steering the
business into the future. Executive roundtables are proactive and
interactive.
Most business roundtables group similar companies together so
business owners interface with others dealing with challenges and
issues within their businesses. For example, small and medium
companies are grouped together because they share commonality in
size, while larger companies meet separately.
Some roundtables even take this process a step further, and group
companies by industry -- service companies, for example, would be
grouped separately from manufacturers or other product-oriented
companies. Nevertheless, good facilitators possess the experience
to avoid grouping companies competing in the same industries in
order to spur discussion on critical business issues.
Concepts and ideas are introduced at monthly meetings where
members follow a 12-month curriculum. Homework also is assigned to
roundtable participants who are asked to complete it by the next
meeting, along with any questions for discussion. Since adult
learners must use new information for it to "stick,"
homework assignments are critical for the adult mind to retain new
concepts.
Nothing about the way a business roundtable is conducted is left
to chance. Members attend meetings offsite to hold distractions to
a minimum. Each meeting follows an agenda so time is used
productively and wisely. Each member is asked to commit to the
group and make every attempt to attend each meeting. The presence
of all members is key to the synergy that commonly accompanies
business roundtables. Many owners even keep in touch long after
the roundtable is over - a sign that these relationships offer
much more than camaraderie.
Since there are many members to share the fee, the cost to members
is a fraction of the cost that a one-on-one business performance
consultant would charge. At the suggested $1,000 to $4,000 per
advisory board member per meeting fee, business roundtables look
like a steal at between $400 and $600 per month.
And that's only one of the many benefits owners and CEOs find they
have a safe haven to discuss issues that weigh heavily on their
minds. They soon discover and learn, from others who have
experienced similar issues that they are not alone in their quest
for top talent, increased productivity and decreased costs.
Besides being an objective sounding board for members' ideas, the
group also can be an accountability factor. If an owner says
he/she intends to implement systems within his/her sales force, it
is almost certain that the rest of the group will ask the next
time they meet how his/her systems are coming along.
The results roundtables elicit can be spectacular! Some members
have reported double-digit profit increases since implementing
ideas that they always intended to put into practice, but had not
done so until joining the roundtable. Others note that personal
productivity has increased as a result of a more focused approach.
Family businesses have found a unique use for business
roundtables. Before handing over the reins to the family business,
junior members attend the one-year course to learn how a business
operates. This head-start gives these soon-to-be business owners
the leg up on other new entrepreneurs. According to one family
business owner, "It's hard to place a value on
experience."
To harness the power of these forums, talk to your business
performance resource about how you can tap into a roundtable in
your area. |
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Fighting Fraud With Internal Controls |
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
|
|
Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
|
Website |
: |
www.cfoplus.net
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![](images/arrow-grey-up.gif)
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Fraud in America is
big business. At almost $50 billion a year in losses, it's one of
the harshest white-collar crimes against companies in today's
marketplace. Companies dealing with fraud, however, lose much more
than just money. Business owners and executives often find
themselves trapped in a myriad of police, attorneys, bonding
companies and company employees as the company tries to put the
puzzle back together, piece-by-piece, to uncover how thousands,
millions and even billions were taken right from under their nose.
According to experts, owners and managers commit 42 percent of
employee-related fraud, and the ways thieves funnel money out of
companies are as diverse as the thieves themselves. In many
instances, the thief just takes the money and runs. In a larger
percentage of the cases, thieves take advantage of open access to
bank deposits and accounts. Others routinely fail to document
various transactions and pocket the cash.
Who is at risk? All industries report some type of fraud activity.
It appears that the real estate and manufacturing industries have
endured a larger share than others. According to the Association
of Certified Fraud Examiners, the average incident was $475,000
for real estate and $274,000 for manufacturers.
Sometimes, the simplest measures are the most effective - and it
begins with internal controls. Tightening internal controls can
alleviate more than 60 percent of attempted fraud. In many cases,
companies have done a very good job of putting internal controls
in place, but fail to ensure these measures are working. Setting
anti-theft policies into action is your best bet for avoiding
fraud.
Owners and executives can take these proactive actions:
. perform an internal control audit;
. review internal control policies with employees;
. redefine employee functions and developing a
rotating schedule of
duties;
. work closely with an insurance company to ensure
the company is
properly covered, just in case fraud is committed;
and
. establish a rigorous hiring process where
references, credit
reports and background information are verified.
When it comes to internal control, the golden rule is
segregation of duties. Checks and balances keep employees
honest. No employee should be allowed to engage in more than one
of these functions: authorizing transactions, collecting or paying
cash, or maintaining accounting records. Employees with access to
two or more of these functions, have an environment ripe for
fraud.
Take our quiz to see if you should look more closely at your
company's internal controls. A single "no" does not
equate to internal control weaknesses significant enough to cause
a major problem. However, multiple negative responses, combined
with lacking information, can create an environment where fraud is
difficult to detect or control. If you find that you may be at
risk, give us a call and we'll discuss your areas of weakness.
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YES
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DON'T KNOW
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NO
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1. |
Are
timely bank reconciliations prepared independent of the
cash function and reviewed by senior management? |
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2. |
Is
check stock independently controlled? |
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3. |
Is
payroll operated from a separate impress account with
canceled checks reviewed for dual endorsement? |
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4. |
Does
management approve all overtime and occasionally act as
paymaster? |
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5. |
Are
cash receipts and deposits processed independently from
the accounts receivable function? |
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6. |
Are
purchase orders used for high volume or frequent purchases
matched with receiving documents and approved invoices
before payment? |
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7. |
Do
check signers review the voucher package before signing
checks and are dual signatures utilized for significant
amounts? |
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8. |
Are
processed invoices stamped paid once checks are signed? |
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9. |
Are
non-owner check signers covered by a fidelity bond? |
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10. |
Do
owners or senior management review aged A/R, periodically
cross check significant outstanding balances, and purge
inactive accounts? |
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11. |
Is
periodic inventory taken for items available for sale as
well as other corporate assets? |
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12. |
Are
budgets prepared by cost center compared to actual
expenses and reviewed by owners and senior management? |
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13. |
Are
the books and records closed accurately and timely and are
resulting financial statements analyzed by management? |
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14. |
Are
accounting personnel cross-trained and are vacations
mandatory? |
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15. |
Are
reference and background checks performed on new employees
with accounting duties? |
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16. |
Are
social security numbers verified for all new hires? |
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17. |
Is
an accounting policy and procedure manual utilized and
does it outline job descriptions and duties? |
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18. |
Is
there adequate segregation of duties within the accounting
department? |
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19. |
Are
computer records secured to prevent unauthorized access
and data manipulation? |
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