Businesses that are growing rapidly and / or have business owners that are required to focus their time on their business rather than in their business can lose control as they become less involved in the day-to-day inner workings of their business. Many different issues can start to arise and it may take sometime for you to see the problem and allow you to rectify it quickly.
One of the more common issues I see relates to cash flow, as there are insufficient internal controls around the cash flow process. For example business owners can be unaware that they are continuing to provide products and services to customers that are not paying as there are insufficient internal controls to notify management of this issue. Other examples relate to the timely collection of debtors. Poor debtor collection is one of the main issues I see across businesses. The reality is that the majority of businesses do not have the right systems and processes in place when it comes to collecting debtors.
Do you have internal controls around stock levels? How often do you undertake a stock take? Are you having cash flow issues resulting from holding too much stock? How accurate are your reporting systems for stock levels?
Setting up the right internal controls is vital in order to have a successful and effective business.
Let me work with you in improving your systems and processes by: