What? You don’t know what a ‘Financial Procedure Development manual is? It is fancy language basically relating to the reviewing, discovering, creating and implementing procedures for efficiency time in your business, with the result of measurable profit. Time efficiency = Cost effective.
It isn’t hard to do. Here is some easy basic step you could take.
Start small, maybe with your AP, those expense items. Follow the current system;
Create the expense, such as determining you need to place an order for items needed to run your business. Are you getting the best value and quality?
Receiving the items, verifying what you order/purchased is correct.
Receive/pay for the purchase. Are you paying the correct pricing quoted?
Being overcharged is very commonly found when doing process review. Moving to something as simple as assigning one employee to handle or oversee the incurring of expenses is one of the easiest initial processes you can implement. Implementing and developing the procedures, will evolve within the task management.
Let’s move on to your payroll process.
Obtain timecards prior to processing deadline. How do the employees track their time? Is someone ‘hunting’ down timecards at the 11th hour.
Review and approve and process paychecks. Corrections needed for details of PTO or holiday pay and all the other variables that payroll consists of? How is the data entering your bookkeeping software? Do you have garnishments to manage?
Manage the tax requirements. When do you submit the payment? Do you need to send a report with the payment?
Something to consider, what is your cost to process payroll, software fee, wages of payroll manager or possibly yourself-is this what you got into business to do? Create your new procedure around TSheets, a time tracking system, with options for every situation, even location tracking. Bonus, it syncs with Gusto, a simple payroll processing software - think Circus character icons to represent the steps to take. Huge time and cost savers, as they both in come with plans starting as low as $25 per month not to mention the savings in wages for the employee who handles this task! Bonus-more savings-no more manually entering the financial details in your bookkeeping software, if you use QuickBooks, the syncing is like best friends finishing each other’s sentence! It can be that simple and save hours off of your wage expenses to cover the small software costs.
Seal the Cracks
All seem very basic and simple steps, right? You could easily create a manual to follow when needing new procedures. Often, we presume there are procedures in place and being followed. Conversely, when actions are intentional to review processes, this discovery phase is eye-opening. This is where we find cracks in the system, leaking profit from the company. The wages incurred to correct the errors are many times ‘presumed’ minimal, or ‘’just a part of doing business”.
Final step, require all employees to follow the newly developed procedure. This can be an evolving procedure, room for improvement is great. Nevertheless, review and changes should occur only after discussion and determination that the change will enhance, not dismantle, the procedure and purpose in which it was developed.
Today is the best day to start making change happen. What if you use these simple steps for all areas of your business? Do you or your employee have time to be involved in the discovery phase? If you need assistance beyond the basics, or a project manager of the discovery phase, guidance on how this could help your company, contact an expert. OrganizerForU has guided, assisted and managed many companies, resulting in measurable increased profits. Contact us, we are ready to help you too!