Finance and their romances
Did you, as the owner (or owner) of a business, suddenly find out that “by tomorrow” you need to pay a large amount of money (hundreds or even thousands of dollars) to the budget – tax or even fines – simply because of an accounting error? Money that was completely legal could not pay, whether all “held” exactly and correctly.
In fairness, in order not to make the accountant “extreme”, tell me, was it ever that the accountant did not have the opportunity to carry out all the documents, because by someone else they were not executed on time or were made with errors?
Did anyone experience a state of shock for a moment, as if from a backstab? Shock and stress are probably unhealthy, aren’t they?
Tell me, how much would you rate the health suffered during the years of such stress and hassle? If someone offered you to return it for a certain amount, how much would you not want to give? Especially compared with a secure and peaceful existence, when it is filled with joy from the growth and development of your business?
Money can make life enjoyable and joyful. But mistakes in financial matters can be a source of great trouble, and not at all joy.
Financial management is a vast and difficult topic. It is safe to say that the topic of money is the most exciting for any businessman, because, anyway, business is, first and foremost, profit.
Today in our brief lesson we will talk only about one aspect of this topic, namely, about the company’s current expenses.
Money and employees
Do subordinates often come to you to ask for money? I am not talking about salary increase, but about money for the company’s current expenses – the purchase of materials, transport, rent, taxes, etc. How do you determine whether to give money or not? Ask a lot or a little? Suppose a sales manager has come to you and says that you need $ 1,000. To make a final decision – “give good” or not, and to what extent – you will probably need some information besides the charm of your subordinate and his ability to speak beautifully.
You need to know at least:
1. Is there any money for these expenses?
2. What goals are these costs? Perhaps the employee offers to start an advertising campaign for your new product. Or maybe he looked at the new furniture in his office. These are different things, aren’t they?
3. How exactly the employee intends to dispose of the money, if they receive it. Agree that the goal is one thing, but how it is going to be accomplished is quite another. For example, the effectiveness of advertising strongly depends on the form of its presentation, on where exactly the advertisement is placed, on the text and many other factors.
4. Why the required amount is this, and not some other. Is it possible to get the same thing cheaper?
Employee asks for money
“Do subordinates often come to you to ask for money?”
Making the right decision would also help
– how much for this purpose is already spent – this week, this month, this year. After all, if an office manager comes to you, for example, to ask for money on paper, and you already gave money for it a couple of days ago, it is reasonable to ask what happened to the previous amount?
– How are things going with the employee who requested this amount? Responsible and productive money can be given. Lazy and loafers – in any case.
– what other expenses are coming in the near future: taxes, unpaid bills, requests for expenses from other employees, etc. And then suddenly we spend $ 1000, and then this amount is just not enough for some very urgent payment – tax, for example.
Now you’ve probably figured it out and think: “What kind of nonsense? I don’t have much time to deal with a single employee!” If this information has to be collected by the manager himself, even thinking up and assuming what data could not be found at all, then there is definitely no possibility and it remains only to rely on intuition, “managerial vein” or something else.
There is, however, a better system. This is a financial planning system, abbreviated to OP, developed by L. Ron Hubbard. Its goal is to ensure the profitability of the organization, that is, the excess of income over expenditure. Any business was probably created on the assumption that revenues there will be more expenses and, in the end, the owner and business will be nice and nice.
Financial planning, in particular, introduces the strictest cost discipline in the organization.
According to this system, an organization must first of all file an application in the established form for any expenses of the organization.
In it, the employee states in writing what purposes these costs are assumed for, giving a comprehensive description of how they are supposed to be implemented.
With the indication of the client company, if any, with a description of what is acquired and why it is needed. And with the exact indication of the required amount. Kohl this is done in writing, no longer justify ignorance or misunderstanding. Ask for money – be kind, clearly state why.