Those who know me, know I am fascinated by politics and public policy which is why checks and balances resonates with me so much as an accountant and a business owner.
I find that small-business owners often have so much on their plates they might not notice what is actually taking place in their business that, if not addressed, can deplete cash, cause legal problems, or cause a host of other issues.
This is why I encourage creating checks and balances that allows you to implement an accounting system that promotes separation of duties. For example, separate accounts receivable duties from accounts payable. You don’t want the person in charge of receiving payment for invoices and services rendered to be the same person responsible for paying outgoing invoices and payroll. Making accounts receivable and accounts payable interchangeable duties can lead to serious cash misappropriation.
Another example is to require monthly reconciliations to be completed by an independent person who doesn’t have check signing responsibilities. Review the reconciliation report to document that a review and reconciliation was performed and keep a record with your files.
Most people have a distorted sense of who is most likely to commit fraud which is why creating the proper checks and balances minimizes your business’s exposure to fraud and other misappropriations.
Besides the key is to adopt the the attitude of the founding fathers – we hope and believe that people our worthy of our trust but at the same time, we put in place measures to reduce our need to rely on trust alone! Do you have check and balances system in your business?
Attending #Nawbowbc with 11 women business owners from Charlotte was a great opportunity to get a better understanding of what drives entrepreneurs to achieve success. We traveled to Spokane, WA where over 400 women gathered to learn, network, get inspired, and support others in their business journey.
The positive energy everyone brought to this event to provide a great atmosphere may be to some extent unique to this particular group of women business owners but at the same time it was exactly what was needed for it to be successful and meaningful.
Author Elizabeth Gilbert’s question “what are you willing to give up to have the life you’re pretending to want?” was thought provoking just like her statement that the “most relaxed person in the room holds Allthe power” and then came Shabnam Mogharabi of @SoulPancake to talk about purpose, risk and most of all Joy. “life is messy and difficult, but you can be Joyful along the way.” that was the message that resonated the most to me.
If we bring Joy and feel Relaxed when we walk into our place of business, or a meeting, or our home then we can experience a far more positive and successful outcome than we could ever imagine.
When was the last time you gave yourself the opportunity to truly be in the moment and be joyful?
Yes it sounds crazy when you say that by you not being in your business, it will actually do better, that it will grow, but it is true. When you have been in business for a few years and you have staff, systems and steady gross revenue, the best thing you can do is take time off.
You need to take time off to learn and grow, to figure out what goals you want to accomplish. To see your business as an outsider as to what works well, what can be improved, changed or removed for the business to flourish and for you to feel accomplished.
Time off is not just to go on vacation drinking margaritas by the pool, although I highly recommend that too! but time to go on business conferences, workshops, self-improvement studies, read a book, listen to podcasts. Any of these activities can help you find clarity and purpose.
Once you take the time off to do any of the above, you will return to your business a lot more centered, focus and ready to inspire your team to reach new goals.