“Removing Roadblocks on Your Path to Success”
Accounting Policies and Procedures – “Promoting Transparency”
Before we tackle this months topic concerning the importance of accounting systems, we would first like to thank all who attended September’s gathering of the Marin Business Forum, with a special thanks to our guest speaker, John Stayton, who addressed the audience on the topic of “Collaborative Entrepreneurship: How Networks of Small Companies Can Do Big Things.” It was another dynamic presentation and we received a great response from those who attended.
One of the things we advocate as part of collaborative entrepreneurship with our clients is finding the right resources to do the job. We partner with other companies such as Accolo to help with staffing challenges for our clients, and our clients partner with Pacific Crest Group because they need our expertise in the accounting and HR area. In order to help our clients more effectively, we recommend they have well-documented accounting policies and procedures in place.
Here are a few fundamental areas to review:
1. Identify risks and weaknesses. Isolate flaws and bottlenecks in accounting processes. For example, if collections are a challenge, look for delays in billing, ill-defined payment terms, or better solutions with payment options.
2. Know your checks and balances. For example, have a second set of eyes on billing and receivables; it’s too easy to miss or hide a discrepancy or a theft.
3. Monitor for complaints from customers and vendors to identify flaws. For example, have there been complaints about the lack of adequate information on invoices? Identify patterns that highlight problems that can be solved with refined procedures.
Our goal is to help our clients refine their accounting procedures to promote transparency, so they can make strategic decisions and stay focused on their mission or growth goals. Well defined accounting practices, documentation and reporting are the basis for a successful venture.
Enjoy the autumn weather, pumpkin patch visits and trick or treating!
March 2011 Newsletter
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
Copyright 2012, Pacific Crest Group, All rights reserved.