Do Business Well

20. Allocate cash received to the relevant sales ledger account

Some companies have suffered as a result of incoming cheques and cash being incorrectly allocated to customer accounts, thus enabling the person involved to redirect cash easily. This practice can go undetected for years unless steps are taken to check on it.

21. Check payroll calculations

Many companies operate bonus schemes which can be manipulated. Payment by results often reduces unit cost but it is essential that the results are measured accurately. Incorrect recording of batch quantities can result in higher wages and a higher unit cost.

22. Check incoming materials

Over-booking of incoming materials can lead to overpayments and shortages on production. Both are unacceptably costly for your company. Make sure that the weighbridge at the goods reception point is accurate and that calculated weights and quantities come acceptably close to invoiced quantities.

23. Investigate despatch shortages

Goods can disappear from company or hauliers’ vehicles and this usually results in a claim for a shortage from the client. Make sure that goods are despatched accurately and are properly protected against theft during transit.

24. Insist that shortages are claimed within a very short time

Claims for delivery shortages should be made very soon, or be invalidated. Once the goods have left your premises you become vulnerable to outside influences. Goods could be stolen en route or at your client’s premises. Therefore it is essential that goods delivered by you are checked by the recipient immediately on receipt and shortages notified to you there and then. Claims for shortages within a period in excess of a few days should be resisted.

25. Practise fire drill regularly

Fire drills can often turn out to be a shambles and sometimes even comic. Check that your fire prevention officers are still aware of their duties and that all employees are trained in what to do in the event of a fire alarm. Have a fire drill without notice and see what reaction you get. Then count the cost of such a response in a real emergency.

26. Make use of the free survey offered by the fire brigade

Firms specialising in the provision of fire fighting equipment and its maintenance will carry out a survey for you. The outcome may be that you are advised to replace old or obsolete equipment. That costs money, so make use of the fire brigade for a free independent survey of your fire prevention equipment and procedures.

27. Have an effective Health and Safety Committee

Make the best possible use of your Health and Safety Committee. Don’t let it become a complaints department. Steer its activities sensibly so that protection of your company and your employees can be improved.

28. Insure adequately

The effect on your company of the theft of a vital piece of equipment or of a major tragedy such as a fire or explosion could be catastrophic and terminal.

29. Be advised of material interests

An employee having a ‘material interest’ in a contract could be in a position to influence matters to his advantage rather than to the company’s.

Possibly related posts: (automatically generated)
Business Security, Crime Controlling 29 effective ways! (11-29)

• Business Security, Crime Controlling 29 Effective ways! (1-9)
• Enthrall your Customers with what you do best
• Business Security, Crime Controlling 29 effective ways! (10-19)
• Dealing with Crisis
• Collection Procedures part 1
• The E-Wallet Wars
• Managing Managers
• Selling Part of your Business
• Who will Handle Commercial Marketing Integration?
• Previewing the Business Plan: The Best Type for You

6 Comments »