Read the following articles to learn more about the importance of cash procedures to the daily activities of your company and on ways to create strategic growth for your organization.

How Important are Cash Policies and Procedures to Your Business?

Creating cash policies and procedures the enhance control and cash management is important for any business. Read more.

What Economic Downturn? Create Strategic Growth Now

How can you ensure your company doesn’t fall prey to negative economic hype and actually grows even now? Read more.

Small Process Changes Can Equal Big Results

Creating improvement in your company leads to customer quality–and it doesn’t need a lot of money or effort! Read more.

Cash Security Practices – Key Facet of Internal Control

Sure you trust your employees, but tempting them with sloppy cash management is a dangerous practice. Read more.

Your Credit Policy Protects Your Business Cash

Giving your customers credit is like lending them cash. Internal control should include credit policy and processes just like it covers how cash is handled. Read more.

Create a Strong Selling Story to Reach the Right Customers

How can you develop the right selling story if you don’t understand your customer’s needs? Learn how to create your value proposition. Read more.

As always, we love hearing from our readers. Please feel free to comment on these articles with your thoughts and ideas. Also, we’ve extended our reach to a number of social media sites so that we can provide information in many different formats. Browse the icons below to join in the discussion!
Best Regards,

Chris
Bizmanualz

The Accounting Department is an area where policies and procedures are usually a requirement, because they are considered part of the internal controls noted in Sarbanes-Oxley. The real question is: What approach are you taking to developing accounting policies and procedures? Are you just doing the minimum, or are you developing accounting policies and procedures in a way that will truly help your organization?

What Should be in Your Accounting Manual?

Most accounting manuals are just a set of procedures. But an accounting manual can play a bigger role in defining the operations of the accounting department. For example, the accounting manual should list responsibilities and describe accounting processes.

Read more about what your Accounting Manual should include…

Are Your Accounting Policies Providing Internal Control?

What is the difference between a well-conceived and well-written accounting policy and a poorly conceived and poorly written accounting policy? Of course, the needs of every organization are different, and the most important element of an accounting policy is that it helps the organization.

Read more about Accounting Policies and Internal Control…

Are Your Accounting Procedures Driving Improvement and Internal Control?

We know from COSO and Sarbanes Oxley compliance that accounting procedures are an important element of internal control. Organizations spend a lot of effort to produce an accounting manual containing accounting policies and procedures. So, if you are going to produce an accounting manual with accounting policies and accounting procedures, how can you make the most of the effort you put into them?

Read more about how Accounting Procedures drive improvement and Internal Control

On That Note:

Answer to this month’s question:

Rule-based “ballistic” procedures may meet the basic requirements for internal control. However, if you must take the time and effort to develop and maintain accounting policies and accounting procedures, why not make the small additional effort to build continual improvement into your accounting processes. Incorporate measurement and review into the accounting processes in order to see if important organization goals are being met. While some might see internal control as a set of rules, real control is awareness of how well accounting processes are operating and what improvements need to be made to meet goals and objectives.

Please feel free to contact us with any questions or comments. Also, please let us know if you’d like any specific topic addressed in our future articles.

Regards,

Chris

Bizmanualz

The internal controls requirement in Sarbanes-Oxley Section 404 has created the most uncertainty and distress in businesses. Frequently those of us involved in office processes are not accustomed to having our work planned and verified to the degree that is common on most factory floors. Creating and implementing an internal control system does not have to be a daunting task. Start small and build it slowly – layer by layer.

How Demanding Is Sarbanes-Oxley (SOX) Compliance?

To a degree, the confusion over SOX seems inordinate in relation to the complexity of the regulation. Actually, compared to the intricacy of other regulations enforced by the Securities and Exchange Commission (SEC), Sarbanes-Oxley compliance is relatively straightforward. It is somewhat hard to understand why there is so much misunderstanding about Sarbanes-Oxley, so let’s review the basics.

Read more about Sarbanes-Oxley Compliance…

Can Risk Management Build Internal Controls?

Using risk management techniques is an important component in creating the internal controls required for compliance with Sarbanes-Oxley (SOX) Section 404.  Risk management includes all the activities associated with identifying and reducing risk, as well as coping with negative events should they occur.  Identifying risks and creating systems and safeguards to ameliorate them is one way to create a basic internal control system.

Read more about risk management and internal controls…

How to Develop Accounting Procedures for Internal Control

When you hear the phrase “internal control system required by Sarbanes-Oxley (SOX) Section 404,” do you automatically think of policies and procedures?  Simply having Accounting policies and procedures does not indicate an internal control system.  Well-written procedures that document well-defined processes, however, are an important component of the internal control system you are building.

Read more about the role of accounting procedures…

On That Note;

Answer to this month’s question:  While internal controls is a rich topic with several levels of meaning and connotation, the most important premise behind internal controls is understanding your processes and knowing if they are effective (achieving what they should achieve).  This can apply to the office (accounting, sales & marketing) as well as the factory floor.  Frequently, internal processes run continually without check and metrics that provide information on effectiveness.  Processes that are not monitored and adjusted to ensure effectiveness are not in control.

Please feel free to contact us with any questions or comments. Also, please let us know if you’d like any specific topic addressed in our future articles.

Regards,

Chris

Bizmanualz

Due diligence means you are collecting the proper information and ensuring you are aware of all the relevant facts. As the term transparency implies, it means there is a degree of openness and honesty. The recurring theme of October’s articles illustrate how important due diligence and transparency can be to business success.

Manage Your Business Banking Relationship

Part of financial due diligence in operating a business is having a financial representative (i.e. Owner, CFO, Controller, Business Manager) meet regularly with a bank representative. Prior to the meeting, create an agenda of topic areas. These should include things like:

• Future financial needs for expansions or acquisitions, like lines of credit or loans
• Best use of cash accounts like sweep accounts to maximize return and minimize expense
• Short and long term investment options for a practical liquidity tree
• Use of merchant accounts

Plus, in these times it may not be a bad idea to discuss the bank’s liquidity and financial stability, especially if you have money in non-insured accounts. Be prepared to ask questions that require details, not unresponsive platitudes. The bank sure doesn’t hesitate to grill you about your business when the money flows the other way.

Read more about managing business banking relationships;

Is Sarbanes-Oxley Improving Corporate Governance?

Again we find ourselves in middle of economic turbulence due in a large part to a lack of business ethics and sound business practices. Without the necessary transparency and due diligence, lies and deception can go unchallenged, particularly when people are being dishonest with themselves.

But wait a minute! Wasn’t Sarbanes-Oxley (SOX) supposed to put an end to all that? Aren’t public companies, financial or otherwise, supposed to have internal control systems in place as well as checks and balances to prevent unrealistic, overly optimistic projections and reporting? Obviously, though well-intentioned, SOX has not been as effective as it should be in preventing fraud, abuse, and intentional ignorance. Also, it apparently has not been successful at encouraging organizations to implement effective financial internal control systems and improve corporate governance.

Read more about whether SOX is improving corporate governance;

Managing Financial Strategy Means Business Success

A clear strategy and plan not only incorporates goals and the activities needed to reach these goals, but it also addresses risks. Obviously, the risk of handing out loans for hundreds of thousands of dollars without the proper due diligence and transparency was not accounted for in managing the financial strategies of those lending/financial organizations now failing or on the brink of failure.

Read more about Managing Financial Strategy;

On That Note;

Answer to this month’s question: Due diligence and transparency are important because being aware of the facts and avoiding deception (including deceiving yourself) can mean the difference between success and failure; between staying in business and going out of business. As the theme of this month’s articles point out, the current state of financial crises may have been avoided if those in charge of banks, lending institutions, regulatory offices, and even elected officials would have exercised appropriate due diligence and transparency.

Please feel free to contact us with any questions or comments. Also, please let us know if you’d like any specific topic addressed in our future articles.

Regards,
Chris
Bizmanualz

How effective are procedures that languish in file drawers or collect dust in binders… never used or seeing the light of day? What is the point of having procedures like these? We have talked in the past about why you need procedures, now let’s talk about how to get those procedures used.

Avoid Poorly Written Procedures

One reason procedures are not used in organizations is because they are poorly written: too long, too confusing, too unorganized, too inconsistent. Hiring or developing a central internal resource with expertise in technical writing and/or developing procedures is a key facet to creating or updating procedures that are readable, useable, and accurate. With an expert or expert staff serving as a base for operational documentation like procedures, and using the process owners and experts as a key resource, the result will be a more consistent, professional output.

Read more about Avoiding Poorly Written Procedures.

Training and Auditing Creates Awareness of Procedures

Once the issue of properly writing procedures is addressed, the next step to ensuring procedures are used is through clear communication to all the affected departments and processes. Procedures should not fall from the sky, arriving to the department along with a stack of other interdepartmental memos, documents and correspondence. Prior or in conjunction to a procedure being released, training should be create awareness of the procedures and explain why it is needed. Follow up audits re-enforce and emphasis the importance of the procedure being followed, as well as identify areas for correction or improvement for the procedure.

Read more about encouraging the use of procedures.

Gaining Buy-In for Procedures

What do we mean by buy-in? Basically, buy-in is getting people to believe. In the context of procedures, buy-in is getting people to believe that having, following, and maintaining procedures is good and important for the organization as well as for their department and them individually.

If they believe the procedure is necessary and helpful, as opposed to just another pointless and burdensome exercise in bureaucratic futility, then the odds of them accepting the procedure as part of their work life will be exponentially enhanced.

Read more about gaining buy-in for procedures.

Management Commitment: The Key to Getting Procedures Used

Properly written procedures, clear communication through training and auditing, gaining buy-in. It takes all of these things for procedures to take root and be considered by the staff as key organizational documents. What is the common link between all these things? Management commitment. Management assigns and allocates the resources in an organization. Without a commitment from management to invest in writing resources, clear communication, and gaining buy-in, there is a good chance that procedures will continued to be ignored; leading to inconsistent process results and potential loss of organizational knowledge.

Read more about the importance of management commitment for procedures.

On That Note

Answer to this month’s question: Procedures can play a important role in an organization, but not if they are unknown, not understood, or generally ignored. If your organization is going to take the time to develop procedures, it should try to understand the role they want procedrues to play, and then work toward developing procedures that fill that role. In any case, however, procedures can not succeed if they are not well written and without proper communication and management commitment.

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The old adage frequently applied to ISO 9001 is “Say what you do and do what you say.”  Some organizations seem to take this to mean “Write down everything you do,” but that is really not required by the standard.  The actual requirement is that processes are well-defined and responsibilities clearly communicated.  This can be accomplished through a lot of methods that require little documentation, such as training. 

The key concept is that the goal is to use the ISO 9001 Standard to improve your business, and if it becomes a burdensome paper bureaucracy, then that is probably not happening.  Using a Lean (meaning not wasteful) approach to ISO 9001 is one way to ensure it becomes a boon, not a bust, to your organization.

Lean ISO 9001 QMS – The Quality Manual

The quality manual is an important facet of an ISO 9001 Quality Management System. The goal should be to have a lean and functional Quality Manual that is easy to maintain, distribute, and most importantly – use.  This not only eliminates waste, it sets the tone that the Quality Management System and its documentation isn’t a needless burden;but an important building block to improvement.

Read more about lean ISO 9001 quality manual;

Lean ISO 9001 QMS – Quality Systems Procedures

The goal of procedures in an organization is to document key processes.  The ISO 9001 Standard does not specify any format for writing procedures, nor does it specify a length.  Since no one wants to read long-winded, boring procedures – why write them?  Why not write one, two or three page procedures using formats like flow charts and lists that are brief and easy to understand?  Again, using a Lean approach makes procedures more useful so they can benefit an organization instead of being a paper burden.

Read more about lean quality system procedures;

Lean ISO 9001 QMS – Other QMS Documents

Very few documents are actually required by the ISO 9001 standard.  But at times developing simple, straightforward documents may be the easiest way to meet the standard, but even more importantly, provide a benefit to your organization.  Your organization must reflectively and actively decide when and where documentation is needed.

Read more about lean QMS documents;

On That Note

Answer to this month’s question:

Complying with ISO 9901 does not have to be a “document nightmare.”  Understanding the requirements of the standard and developing ways to meet them does not always require a lot of documentation.  In fact, the more Lean approach you take to creating documentation, the more likely the documentation you create will help your organization.

Please feel free to contact us with any questions or comments. Also, please let us know if you’d like any specific topic addressed in our future articles.

Regards,
Chris
Bizmanualz

In June, our articles covered topics like improving business ethics, learning operational assessment, creating effective management and maximizing departmental communication. All these are important ingredients for successful business management.

Improving Ethics in Your Business

Corporate scandals in recent years have lead to a flurry of changes in how we conduct business at many levels. The federal government has increased regulations for companies producing financial reports through the Sarbanes-Oxley Act (SOX), and internally many companies have increased the responsibility of the Board of Directors in overseeing the managing executives.

Read more about improving ethics in your business…

Learning Operational Assessment to Improve Department Management

Taking over a department can be challenging. You can see the potential, but if the department was not well-managed in the past then it may be in disarray. Disorganization is only the start of the problems. The staff may be demoralized and unproductive, goals are not understood – let alone being met. How do you get things on track?

Read more about learning operational assessment;

Creating Effective Management Systems

When first taking a management position in an organization, it can be difficult to fully grasp exactly what your role is and how to fulfill it. The sad truth is that many of us have seen mostly negative examples of management and management styles, and few positive ones. Without proper role models it is difficult to step into those shoes.

Read more about creating effective management systems;

Maximizing Departmental Communication

We should all recognize the importance of good communication, but how good are we at executing and employing basic communication principles as managers? If any of your employees come into a performance review unsure of what is going to happen, then you should know you are not doing as well as you could.

Read more about maximizing departmental communication;

Using the right tools and methodologies is very important in business management. Regular communication with team members is as important as planning, executing and measuring action steps to effect improvement. Management is a system made out of interrelated sub-components and managing is all about balancing these components.

On That Note

Answer to this month’s question:

Planning is not about being perfect, but about being prepared for unexpected (or undesired) results. It is about making an effort to find the best way to achieve your goal while keeping an eye on what could potentially go wrong, and how best to address it. With a proper plan in place, you will not be surprised by a different outcome. Instead, you and your team will feel prepared and empowered to tackle the issues.

As the first step of the process approach (Plan-Do-Check-Act), planning sets the tone for what the end result will look like.
Please feel free to contact us with any questions or comments. Also, please let us know if you’d like any specific topic addressed in our future articles.

Frequently the ISO 9001 Standard is perceived to be complicated and heavy on documentation requirements. These perceptions are not necessarily accurate. The ISO 9001 Standard is actually very straightforward with simple requirements for procedures and records. The ultimate goal, however, of implementing ISO 9001 should be to create an organization that continually improves.

Why Implement an ISO 9001 Quality Management System?

Why should your organization use the ISO 9001 Standard? An honest reply can say a lot about how effectively the standard can improve your business. If you are using the standard as a marketing gimmick (a plaque on the wall; a logo on a website), or just because a customer requires it, then the standard will be a burden, not a benefit. If the honest reason for implementing the standard is improvement, then it can truly help your organization become better.

Read more about why implement ISO 9001;

Using ISO 9001 Makes Your Organization More Competitive

Implementing the ISO 9001 Standard as a Quality Management System can improve your business. In fact, that is why it was created. It is broadly recognized as a proven method of using a systems and process approach to make your business better. It can make your organization more effective, and therefore more competitive.

Read more about using ISO 9001 to become more competitive;

Improving Organizational Culture by Implementing ISO 9001

Another important advantage of implementing the ISO 9001 Standard is improved organizational culture. Faithfully employing the standard can actually change how people feel and behave in the organization, and how its members interact with peers, subordinates, and superiors.

Read more about improving organizational culture through ISO 9001;

If you are interested in using ISO 9001 to improve your organization – Bizmanualz can help. We offer training for well-defined processes based on the ISO 9000 continually improving process approach and for effective internal auditing (a key facet of the ISO 9001 Standard). We also provide customized consulting engagements to help you start down the path of effective ISO 9001 implementation or improve an existing system. We also have an off-the-shelf manual the assist you is creating the documentation needed for an ISO 9001 Quality Management System.

On That Note

Answer to this month’s question:

Implementing the ISO 9001 Standard can improve your organization in several ways. Most importantly, it creates an environment where reflective objective setting and measurement becomes the norm. This is foundation for improvement. Contrary to popular belief, ISO 9001 can actually help you streamline your document and record system and make it more effective. Finally, using the ISO 9001 Standard can improve your competitiveness and your organizational culture.

Please feel free to contact us with any questions or comments. Also, please let us know if you’d like any specific topic addressed in our future articles.

The advice for writing procedures is the same as for any kind of writing project – from a college term paper to a novel, a business letter, or a procedure; craft the writing project by working through a process that includes three phases: Plan – Draft – Revise. Extensive research has shown that writing projects of any kind tends to be successful when writers use the process approach and engage in some type of activity from all these three phases.

Planning Activities to Write Effective Procedures

A key planning activity for writing a good procedure is to understand the process that the procedure will document. That starts with research, or in other words, collecting information. This would include doing things like interviewing process owners and process doers.

Read more about planning to write a procedure;

Process Approach to Writing a Procedure – Creating a Draft

What do we mean by a successful draft? It doesn’t mean that it is perfect and ready for release – it is a “draft.” In a successful draft, whether an essay, a report, or a procedure, you have created a coherent piece intended for a user/reader in the proper form. This is different from what is created in the Planning stage such as a process map, outline, or notes and free-writing.

Read more about drafting a procedure;

How Revision Creates Effective Procedures

Once a draft is completed, the revision stage begins. Obviously, the revising step means looking for errors. Recall while drafting we talked about not being obsessed about errors and perfect writing – such concerns can actually inhibit drafting. But revision is more than just looking for errors; it is about truly crafting the document.

Read more about revising procedures;

One way to make the procedure writing process easier is to start with prewritten procedures like our Bizmanualz Policies, Procedures & Forms. They contain clearly stated policies, researched and incorporated best practices, suggested objectives, and ready to use forms. Plus, they are all delivered with an accompanying CD that contains all content in Microsoft Word files for your easy customization and modification. They can give you a big head start with your procedure writing project.

On That Note

Answer to this month’s question:

When using the writing process, you are engaging in activities from all three process stages. The result is a well-thought out, clearly written, and properly reviewed/tested procedures. Shortcuts such as skipping planning activities or not using separate reviewers can frequently result in procedures that increase process confusion and variability instead of reducing it (the main goal of a procedure). Poorly written procedures also run the risk of not being followed, and generate additional burdens with after-release revisions.

Please feel free to contact us with any questions or comments. Our policies, procedures and processes articles site has tons of useful information. Also, please let us know if you’d like any specific topic addressed in our future articles.

Regards,
Chris
Bizmanualz

This month’s highlight was the release of the Finance Policies, Procedures & Forms manual. Our newest product is the result of a nearly year-long effort of intensive research, writing, editing, and reviewing. The Finance Manual was finally ready for production and shipping last week. We are very pleased with this new product, and the response from our customers, to date, has been tremendous.

The Finance Policies, Procedures & Forms Manual is primarily designed to assist companies of all sizes and types establish strong internal controls to simplify compliance with Sarbanes-Oxley and other financial regulations. Another important benefit of well-designed internal controls is the opportunity to measure and improve process effectiveness.

Improving Financial Performance through Clear Objectives

Almost every business pays attention to financial performance. Studies show, however, that small and medium-sized businesses frequently do not engage in thorough financial planning. What really drives financial performance is setting SMART objectives based on clear goals and then creating detailed action plans so that the objectives can be achieved.

Read more about setting clear objectives.

Using COSO Principles to Improve Performance

You may be familiar with the Committee of Sponsoring Organizations of the Treadway Commission, or COSO, framework for internal control. We have discussed it in past article, and it received significant attention when referenced by the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) as an example of an internal controls system meeting the requirements of the Sarbanes-Oxley Act (SOX), sections 302 and 404.

Read more about using COSO principles.

Read Chris Anderson’s article on Writing Policies and Procedures at work.com.

The New Finance Policies and Procedures Manual

If you are trying to build an internal control system to help you comply with Sarbanes-Oxley and other financial regulations, the new Finance Policies, Procedures and Forms manual can provide a big boost in your efforts. Why start from scratch when writing your financial policies and procedures to implement internal controls?

Read more about the new Finance Procedures Manual.

Besides helping comply with financial regulations, control systems can improve performance in all business segments. Through control activities, for example, policies and procedures can also incorporate the idea of setting process objectives along with regular measurement and review, as well as creating communication channels between key departments. In fact, all the procedures found in our policies and procedures manuals are based on the “Plan-Do-Check-Act” process model of continual improvement, including our newest release, the Finance Policies and Procedures Manual.

On That Note

Answer to this month’s question:

Sarbanes-Oxley (SOX) has generated a lot of discussion about internal controls: What are they? What do they do? Historically, for business finance and accounting processes, controls referred to preventing fraud and abuse. Increasing regulatory requirements have made compliance an important part of control system goals.

Policies and procedures are listed as key control activities in the COSO publication “Internal Control – Integrated Framework.” Both the SEC and PCAOB point to this COSO document as an example of internal controls that meets SOX requirements.

Please feel free to contact us with any questions or comments. Our policies, procedures and processes articles site has tons of useful information. Also, please let us know if you’d like any specific topic addressed in our future articles.

Regards,

Chris
Bizmanualz