Organizing your business

The organization chart is a diagram showing graphically the relation of one official to another, or others, of a company. It is also used to show the relation of one department to another, or others, or of one function of an organization to another, or others. This chart is valuable in that it enables one to visualize a complete organization, by means of the picture it presents.

MANAGEMENT

Do I have the information I need to make decisions?

What are the resources of the business?

What debts does the business owe?

Does the business have cash? Earnings? How much? If not, why?

Are expenses too large in relation to sales?

Are amounts owed by customers being collected rapidly?

Are amounts owed by the business being paid on time?

Will the business be able to meet its own debts?

Should an item be discontinued? Added?

What are the trends?

Should selling prices be increased? Decreased?

Can we afford to purchase equipment? Hire someone?

LENDERS/CREDITORS

Are the earning prospects good?

What is the debt-paying ability?

Has the business paid debt promptly in the past?

Is collateral sufficient for a loan?

Should credit be granted?

GOVERNMENT

Tax reporting and tax collections.

Compliance and labor laws.

LABOR UNIONS

Labor negotiations and wage agreements.

INVESTORS

For investment decisions.

Things your record keeping system should help you know, do, or monitor.

Daily

Cash on hand, including petty cash and imprest cash.

Bank balances of all back accounts (including checking, savings and debt).

Daily sales totals.

Daily cash receipts totals.

All errors in records are identified and corrected.

A record is maintained of all cash paid out, by cash or by check.

Daily cash and sales, and charges and cash received, are reconciled.

Bank deposit is made.

No cash is disbursed or purchases made without your authorization.

The hours your employees worked, were sick, or took vacations or other time off.

Inventory transactions (receipts and sales) are properly recorded.

Weekly

Accounts receivable balances – take action on all past due from customers.

Accounts payable balances – stay current with your vendors, take advantage of discounts when cash flow allows.

Payroll records – be certain all records include current names, addresses, Social Security numbers, number of exemptions, pay period end date, hours worked, pay rate, total wages, deductions, net pay and check number.

Tax reports and deposits are made (sales tax, withholding taxes, and estimated self-employment taxes).

Required benefits are paid (unemployment compensation, worker’s compensation).

Monthly

Total accounts receivable at end of month and aging (30, 60, 90 days past due).

Take action to collect bad and slow accounts.

Total accounts payable at end of month.

Take action to work with your vendors if you can’t pay on time.

All journal entries are classified and summarized or reconciled.

If you find errors, fix them.

All bank statements are reconciled.

If you and the bank statement disagree, work with the back to solve the problem.

Petty cash is reconciled.

All tax deposits are made.

A profit and loss statement for the month is prepared (usually 10-15 days after the close of the month).

If your profits are low or you have losses, take action (adjust prices, reduce overhead, and prevent pilferage).

Take inventory.

Review your inventory to remove slow moving stock and increase inventory of what moves quickly.

Update your cash flow projections.

Always use the past and present to make decisions about the future.

Avi Werde

Head Quarters , 231 Rogers Ave, Brooklyn, NY, 11225, United States

Avi started his business life at a very young age, which has allowed him to explore many industries. After finishing his studies as a music student he went on to other areas in the hospitality industry expanding his knowledge and experience to the point that he felt unsatisfied by the restraints and slow progressions of working for another leading him to create his company ECS (Event Connection Source). This brought Avi national and international attention as the world was to experience their first large scale Jewish wedding expo, opening doors that he has been yearning to open. He has since been involved with projects such as Concerts, Galas, Art Shows, Art installations, Fashion shows, managing event spaces, birthdays, product launches, corporate events, Festival management, parties, event marketing, PR, the works.