January 5, 2016
Best Practices Checklist
 
Record keeping
  • Keep and READ accurate, up- to-date records of daily operational activity
  • Keep and READ accurate, up-to-date records of AP, AR, Remittances, etc.
  • Know your costs on every job
  • Create a history of past sales and expenses to help monitor current margins
  • Ensure all job costs are accurately reported and processed into AR
  • Ensure your remittances are paid regularly to avoid unnecessary penalties
 
Managing finances
  • Create a successful business model with periodic profit goals (quarterly, monthly)
  • Have accurate financial statements created every month and UNDERSTAND THEM
  • Invest annually in business development, continuing and education (i.e. CLM)
  • Consult quarterly with a professional accountant and monthly with a qualified bookkeeper
  • Check often your expenses, sales and wages
  • Sufficiently reward yourself and your employees
  • Have budgets for everything, stick to them, and evaluate regularly
  • Ensure you have a great working relationship with bankers, accountant, shareholders, etc.
  • Wisely invest revenues to create sustainability and adequately capitalize your company
 
Maintaining cash flow
  • Invoice your customers on time, every time
  • Have a computerized consistent and professional template for creating invoices
  • Promptly collect outstanding invoices (net 10 days or due on receipt)
  • Negotiate the best possible terms with all suppliers, including early booking discounts
  • Cash flow doesn’t mean your cash bank balance today — make sure you understand that
  • Charge fair and profitable rates for your business
 
Purchasing and acquisitions
  • Carefully research purchases for both value, quality and NECESSITY
  • Stage your purchasing over time.
  • Don’t borrow money you can’t afford to quickly repay. Remember the slow months
  • Borrow as little as possible