Keep Them In Order
A business owner once said, "who needs a proper system when my money in the bank keeps growing!" This business owner did not think a management system was necessary until a circumstance arose and he was “required” to analyze his company’s financial well-being
One does not just look at the growing bank balance to determine the well-being of one’s business. And no matter how small is the operations, every business needs a management system to enable the owner to feel the pulse and the health of the business.
When we discuss about the management system, the computing software will probably come to our minds. In fact, only after you have established a framework of procedures and policies for your business operations, and set up an accounting system to summarize the financial aspect of the business activities, should computerization of your management system be done as the final step.
Procedures are to keep the flow of the operations in order.
Policies are to keep the execution of the operations in check.
With the procedures and policies in place, the accounting system is designed in conjunction with the standard operating procedures and policies.
There is no hurry in computerizing the management system, including the accounting system.
The execution of business activities, the gathering of data on these activities, and subsequent recording of these data, are initially done manually to ensure the procedures and policies of this management system is effective and efficient, as a pre-trial before computerization.
Whether it is done manually or automated, a system should be comprehensive and sophisticated, and able to capture all your business objectives and operations need – it is also important that this system is easy to operate.
The system is “comprehensive and sophisticated” so that you do not have to unnecessarily and frequently modify and upgrade the system. It is easy to operate as you have to cost consciously consider the human resources aspect of being able to implement this system effectively.
Next, let’s chart an organization structure of your business to determine the manpower needs to operate the system. Evaluate the qualifications of existing staff and place suitable personnel at crucial positions to operate the system seamlessly. Recruit the right personnel to fill the rest of the positions. Consider all these with the goal to move the system from manual to computerization.
All these have to be documented and become a standard operating procedures manual of the company.
Now, let’s computerize your system to generate those reports to analyze your company’s financial well-being, and continuously keeping them in order.