Jeremy's Blog

Putting your business’ systems and procedures into a written manual will give your business a far better chance of being successful, especially with the help of a competent performance accountant.  The time and effort it takes to draft a written systems manual will be well worth it because when problems arise, (e.g. a key member of staff is sick), management and staff can refer to the systems manual to get guidance on what should be done in a particular situation.

System Manuals From Your Performance Accountant
Your system manuals, overseen by your performance accountant, might include instructions on how to produce key information including:

• Daily bank balances
• Sales
• Number of customers
• Weekly performance reports
• Staff productivity
• Monthly debtors' aged analysis
• Creditors' aged analysis
• Cashflow position
• Departmentalised financial accounts compared to budgets

• Checking of cash register tapes
• Stock purchases issued/balance on hand records
• Employee wage records
• Capital expenditure
• Research and development expenditure
• Insurance covers
• Updating of budgets and cashflow forecasts
• Establishment of appropriate control of commerce and internet banking transactions
• Procedures relating to opening an account with suppliers
• Use of purchase orders
• Checking suppliers' tax invoices against delivery
• Payment of tax invoices
• Cheque preparation
• Substantiation of expenditure record
• Bank account operation
• General ledger postings
• Checking of cash register tapes

We would be happy to let our performance accountant help you conduct a detailed review of your systems including your systems manual, business records and filing systems.

These include listening to team members, customers and suppliers; learning from their comments and making changes if necessary.  Virtually every week something is changing in business.  To be successful, you need to keep on top of the ever-changing business climate.

Why You Need A Performance Accountant: Helping Everyone Get Along Well
Business operators need to encourage loyalty from their team members, suppliers and customers.  These people will also expect loyalty from management, directors and owners.

Why You Need A Performance Accountant: Analyzing Important Marketing Tools For Feedback
The use of marketing tools such as the following all help management get important feedback on their products / services:

• Databases on customers
• Surveying customers on what they like and don't like about your business
• Keeping webpages up to date
• Testing the market for reaction to new products and services

Most successful businesses create strategic alliances with other people in their industry, either suppliers, similar businesses in other geographical areas that are not direct competitors, or allied organisations.  Strategic alliances can significantly contribute to your knowledge base on what is happening in business.

Why You Need A Performance Accountant: Helping You Tie Things Up Successfully
But all these attributes fade into insignificance if there is no culture within the organisation.  Culture affects every aspect of the business, shareholders, directors, management, team members, customers and suppliers.  Culture is the hidden success: the icing on the cake, the attitude of team members going that extra distance to satisfy customers' requirements.  It’s a supplier making an extra late delivery to you when you need those supplies.  It’s customers who might be prepared to overlook a late delivery because of their overall satisfaction in dealing with your business.

Culture relates to the image that your business creates in the market place:

• How people communicate
• Is the telephone answered in a professional business manner?
• Are telephone calls replied to?
• Are emails responded to?
• Are products delivered on time and at the required workmanship?
• Is quality a major issue in the business?
• Are staff pleasant and presentable?

Culture then is one of the major attributes of a business that will help hold the business together and will give the business that extra strength and perseverance to battle through and survive harsher economic circumstances, and it's something that you can understand better through the help of a performance accountant.

Many public companies have been raising new capital to replenish their reserves following trading difficulties during the global financial crisis, asking for assistance from a small business accountant.  Many small/medium enterprises will also be looking to raise additional loan funds or capital to be able to exploit the expected market opportunities as trading conditions improve.

Financial Implications and Why You Need A Small Business Accountant

Banks are imposing financial stress testing to any new loan applications, which means SMEs need to carefully prepare loan applications.  The upturn in business confidence has encouraged some Business Angels to start re-evaluating proposals for capital investments in some small/medium enterprises.  If you are trying to raise a substantial loan or capital from Business Angel investors, your business application will be enhanced if the appropriate planning strategies have been implemented so as to professionalise the approach being made to potential investors or lenders.

Questions Your Small Business Accountant Would Help You Answer

• What problems are solved by the product/service or technology?
• How is it different from competitors’ products/services or technologies?
• What is the stage of development?
• What is the sustainable competitive advantage?
• How will the products succeed in the market?
• What testimonials can be produced from current customers?
• Is the product/service or technology already available in the market place and is there further research to be undertaken?

• Has an independent technical assessment on the product/service or technology been conducted?
• Is it a standalone product/service or technology or will it form part of a product stream?
• How is the intellectual property protected?
• What market research analysis has been undertaken?
• What is the WOW factor?
• Who are the members of the management team?
• What is the management team’s experience? It is a good idea to attach the management team’s CVs to a funding application.

Other crucial information can be gleaned directly from your small business accountant.

What Your Auckland Accountant Would Be Able to Help You Realize

• Being concerned about your staff, communicating with staff, letting staff know what your business plan is
• Having concern for customers, establishing databases, having an ongoing communication strategy to keep customers informed about developments within your business
• Having concern for suppliers, having open and frank discussions with suppliers about your customers demographics and preferences, arranging to purchase products suitable for sale within your business and supported by extraordinary service from your suppliers

The key is to keep on reviewing the plan.  When you start in business, find a ‘difference’ in your offerings.  Find a ‘niche market’.  Try and learn from other people.  Employ people who are very capable and maybe smarter than you.  Know what you are doing and where you are headed in the market place.

Be humble and patient and realise that a business is not a sprint – it’s a marathon, and one that you can run better when you tag your Auckland accountant along.