Monday, July 19, 2010

Creating Business Process Effeciencies

As companies struggle to cut costs, they are challenged to do more with less. Working with fewer resources has forced businesses to work smarter rather than harder. Reviewing existing work flows creates opportunities to improve efficiency and reduce cost. Following are examples of processing improvements adopted by some of my clients:

  • Automate manual processes using technology - By adding an application to the technician's Blackberry phones, employee time is downloaded to the payroll system and accurate data is collected to monitor labor by customer job.

  • Establish internal controls - One client implemented a purchase order system to authorize payments to vendors, which reduced errors due to incorrect billing and reduced processing time by relying on a three way match between the invoice, P.O. and receiver.

  • Eliminate redundancy by combining functions - By developing a Job Cost Sheet, my client organized recordkeeping to create a systematic methodology for customer pricing, provide the basis for creating the customer proposal, and establish a budget to measure against actual costs.
To obtain more information about mapping process work flows, contact Campanelli & Associates CPA for a free initial consultation.

Monday, July 12, 2010

Increase Energy Efficiency in Home and Office

With energy prices soaring, I was delighted to find http://www.homeenergysaver.com/ to assess the energy efficiency of our home. We entered information for square footage of home and windows; age and types of appliances; and thermal ratings of insulation in walls, attic and cellar. We were already using energy efficient lighting, but discovered we could gain substantial savings by installing a water heater and making other improvements.

For a more comprehensive analysis, you can also hire a professional energy auditor. These are typically found through the ‘Building Performance Institute’ or through the federal government’s “Energy Star” program to save up to 1/3 of energy costs, which should more than recoup the $500.00 cost.

Either way, reducing overall consumption has the benefit of reducing carbon emissions, resulting in a greener environment. I hope you will consider one of these methods to save money and learn more about energy conservation.

Wednesday, July 7, 2010

Create Your Working Capital Scorecard

During a troubled economic period many businesses struggle with cash flow management. Here are three tips to help manage the process:

1. Review your process flows for accounts receivable and accounts payable. The goal is to reduce receivables and extend payables where it makes sense to do so. Collection procedures and credit granting policies for A/R can reduce risk of uncollectible accounts, while automating recurring billing procedures and initiating progress billing procedures standardize cash receipts.

2. Take a look at your companies supply chain. You may be able to negotiate vendor terms and discounts, find new suppliers, or alternative parts that reduce overall costs. Reviewing fixed costs contracts, such as insurance premiums, can elicit savings in reduced rates, but also ensures proper coverage. As your business changes, the levels and amounts of insurance previously provided may no longer be needed. Consider auditing vendor agreements for conformity with terms of contracts and premiums are correctly invoiced. Initiating simple controls can prevent and detect costly errors.

3. Manage inventory levels. Divide products into low or high volume sellers then make decisions about which products to stock and which to order based on sales volume. Review sales projections weekly and report backlogs and/or missed promises for accurate production scheduling. Calculate your economic order quantity (EOQ) based on the total demand for the year, the purchase cost for each item, the fixed cost to place the order and the annual storage cost for each item.

To develop a “working capital scorecard” or to obtain more information on any of the components mentioned herein, contact Campanelli & Associates CPA.

Wednesday, February 10, 2010

Interactive: Word 2003 to Word 2007 command reference guide - Word - Microsoft Office Online

Remember when we used to use Lotus 1-2-3, and had to learn the Excel commands? Well, if you've been postponing the upgrade to Windows 2007, this reference guide will make the transition to Word 2007 a little easier. Check it out.

Interactive: Word 2003 to Word 2007 command reference guide - Word - Microsoft Office Online