By 2011, the US Securities and Exchange Commission (SEC) is supposed to have decided if it should begin making rules for the utilization of the International Financial Reporting Standards (IFRS).  The SEC has already developed a “road map” for the use of financial statements.  AICPA has been instrumental in paving the way for the adoption of IFRS.  By 2014, US companies are supposed to have made the switch from the use of Generally Accepted Accounting Practices (GAAP) to IFRS.

The differences between IFRS and GAAP are many and adopting IFRS — even with short- and long-term convergence projects on which the IASB and FASB are collaborating, and the ongoing guidance that these and other organizations will surely provide — will not be an easy task for American companies.

For example, GAAP and IFRS differ with respect to inventory valuation (IFRS does not permit the LIFO method) and revaluation of property, plant, and equipment (IFRS permits consideration of fair value, whereas GAAP only considers historical costs).  Other areas where there are significant differences include compensation linked to GAAP financial metrics (which obviously will go away) and revenue recognition (where GAAP is more detailed, extensive, and even industry-specific).  Finance, Operations, and Human Resources are just three areas where the changeover will have a significant impact.  In fact, the volume of changes alone portends a great deal of difficulty for most US companies between now and 2014.

Also, because the GAAP system is so deeply ingrained in the American way of conducting business, there is concern in the US and around the world that the transition may not go well.  It’s the same as with any other behavior that becomes habit: people have to implement the IFRS and people generally don’t handle change well.

There are some outside the US who fear the upcoming implementation of IFRS in the US because — they feel — the US may not “leave well enough alone”.  Yet, since much of the world has already adopted IFRS, companies in the US will have to follow suit…won’t they?

What do you think?  Will the adoption of IFRS in the USA go smoothly?  What will 2014 look like in the field of American accountancy?  What impact will the changes have on your business?  What are your thoughts?  Your concerns?

You have decided you need policies and procedures, but which business policies and procedures do you need?  Assess the business impact of each of your core business processes to generating revenue or introducing risk and then rank the results.  Core business processes that greatly impact your revenue or risk are where you want to start.

The Bizmanualz CEO Company Policies Procedures Manuals are designed with your core business processes in mind.  The nine business procedures manuals in the series provide your entire company with examples of the primary procedures used in writing your company procedure manuals.  How do the nine procedure manuals address the core business processes?

1. Customer Strategy & Relationships (Marketing) is a good place to start.  Most businesses talk about the customer being the most important part of any business.  Well, if your customer is so critical, have you mapped out a clear customer strategy and customer relationship process?  Do you have customer strategy procedures for developing awareness and education of your business in the marketplace?  The Bizmanualz Sales and Marketing Policies and Procedures Manual provides sample policies and procedures to help you set marketing strategy, marketing tactics, and marketing planning to cover the first part of your marketing sales funnel — awareness and education.

2. Employee Development & Satisfaction is essential to your business because your employees are the ones that talk to and develop your customers.  The Bizmanualz Human Resources Procedures Manual provides example procedures for hiring, administration (e.g., personnel records, compliance), compensation, and — the most important part – developing your employees.

The HR manual also includes a sample Employee Handbook and an HR Manager’s manual to provide a complete discussion of human resources.  Keeping employees and facilities safe is the focus of the Bizmanualz Security Procedures Manual, which includes coverage of guard force management, employee conduct, emergency operations, protection, and safety.

3. Quality, Process Improvement & Change Management is driven by competition, your desire to excel at what you do and make your customers happy.  The Bizmanualz ISO 9001 QMS Procedures Manual provides a sample quality manual, the six quality procedures required by ISO 9001, and additional supporting procedures to provide a foundation for your process improvement and change management initiatives.

4. Financial Analysis, Reporting, & Capital Management is critical to fast growth companies.  Cash is the lifeblood of your company and a fast growth company consumes cash quickly.  The Bizmanualz Financial Procedures Manual has example procedures for financial administration, raising capital, managing capital, financial statement reporting, and the internal controls necessary in a fast growth company.  A controllers manual is included to provide the direction and organization for controlling your company cash.

5. Management Responsibility addresses all of your core business processes and is integral to every area of your company.  Every manual in the “CEO Company Policies Procedures Manuals” covers the management of that departmental area.  Each manual provides a departmental (functional) manager’s manual that describes the departmental organization structure, major responsibilities, departmental guidelines, ethics, policies, and – of course – the primary business processes for that department.  The Bizmanualz Business Procedures Manual provides a simple, fast, and easy way to provide immediate oversight for all of your operations.

6. Customer Acquisition (Sales) is about engaging the customer and closing the sale.  The Bizmanualz Sales and Marketing Procedure Manual contains procedures for the entire sales funnel, sales process, sales administration and sales management common to organizations that have to oversee a sales force.  The Bizmanualz Accounting Procedures Manual contains procedures for controlling cash and the revenue cycle, which is a parallel and supporting activity to the sales process.

7. Product Development must obtain requirements from sales and develop products that satisfy the customer.  Therefore, product development procedures are found in both the Bizmanualz Sales and Marketing Procedure Manual and the Bizmanualz ISO 9001 QMS Procedures Manual, which contains procedures for customer requirements, as well as the design and development of new products.

8. Product/Service Delivery The Bizmanualz Accounting Procedures Manual contains procedures for shipping, receiving, and inventory control.  But since delivery is part of ISO and quality, the Bizmanualz ISO 9001 QMS Procedures Manual also provides coverage of this critical customer facing area.

9. Accounting Management is about accounting transaction management, as opposed to finance which is focused more on raising, managing, and using cash effectively.  The Bizmanualz Accounting Procedures Manual focus is on controlling operating cash receipts, cash disbursements, inventory and assets, the revenue cycle, and general accounting administration.

10. Technology Management is about all of the technology in your company.  The Bizmanualz Computer, Network and IT Procedures Manual contains procedures for IT administration, IT asset management, IT training, technical support, IT security, IT disaster recovery, and software development.  More in-depth continuity planning coverage is provided with the Bizmanualz Disaster Recovery Procedures Manual.

Business Process Policies Procedures

The Bizmanualz CEO Company Policies Procedures Manuals collection is the best overall deal — you save 45% when you buy the set, compared with purchasing all nine manuals individually.  The series covers all of the core business processes in one simple bundle.  It includes manuals for:

• Financial Policies and Procedures
• Accounting Policies and Procedures
• Computer & IT Policies and Procedures
• Human Resources Policies and Procedures
• Sales & Marketing Policies and Procedures
• ISO 9001 Quality Policies and Procedures
• Security & Disaster Policies and Procedures
• Business Policies and Procedures Sampler

Every critical area of your company is now covered with the Bizmanualz CEO Company Policies Procedures Manuals set.  Coverage is now easily at hand for Accounting, Administration, Customer Service, Disaster Management, Engineering, Environmental Management, Finance & Credit, Information Technology, Manufacturing, Personnel, Sales & Marketing, Security Operations, Shipping, Purchasing, Inventory, and ISO 9001 conformance.

Is President Obama’s plan to increase regulation on the markets?  His new chairman of the Securities and Exchange Commission, Mary Schapiro, indicated its time for small public companies to comply with the Sarbanes-Oxley Act.

The original intent of the Sarbanes-Oxley legislation was for all public companies to comply with the requirements for internal controls over financial reporting.  Companies with less than $75 million in market value were supposed to comply.    

Under the Bush administration, the former SEC chairman Christopher Cox had granted a series of one-year exemptions for small business. Many small businesses complained that it would be too costly for them to comply.

The new SEC chairman said internal controls guarantee “accurate, robust and easy-to-understand financial reporting,” and that “It’s time that we bring uniformity to the system so that investors know what to expect from companies.”

If there is one thing we know about regulations, they always increase and rarely ever decrease.  One just has to accept the fact that regulations are ever increasing.