Graphical Chart Business Growth

1
Overview of Operational Reviews by Cpa Juan M.
García Merced
Powerpoint Templates
2
Why Businesses are in Existence

1. The customer service business. To provide goods
   and services to satisfy desired customers, so
   that they will contiinue to use the businesss
   goods and services and refer it to others.
2. The cash conversion business. To create desired
   goods and services so that the investment in the
   business is a quickly converted to cash as
   possible with the resultant cash-in exceeding the
   cash out.

3
Basic Business Principles

1. Produce the best quality product at the least
   possible cost.
2. Set selling prices realistically
3. Build trusting relationships
4. Do not spend a dollar that doesnt need to be
   spent
5. Manage the company
6. Do not hre employees unless they are ABSOLUTELY
   needed
7. Develop contingency plans for the unexpected

4
Criteria for Growth

1. Cost reductions
2. Price increases
3. Sales volume increases
4. New market expansion
5. New distribution channels
6. Market share increase
7. Selling or closing losing operations, locations,
   or products
8. Acquisitions
9. Developing new products
10. Non value added activities eliminated
11. Making employees responsible
12. Organizational structures revisions

5
Helpful beneficial

• Areas in need of improvement
• Pinpointing the cause
• Quantifying the effect of the problem
• Developing recommendations to correct the
  situation

6
Three Operational Reviews

• Economy conservation of resources
• Following sound purchasing practices
• Overstaffing
• Allowing excess inventories
• Using equipment that is more expensive than
  necessary
• Avoiding the waste of resources

7
Three Operational Reviews

• 2. Efficiency minimum expenditure effort
• Improper use of procedures
• Inneficient paperwork flow
• Inefficient operating systems
• Duplication of efforts
• Unnecessary work steps

8
Three Operational Reviews

• 3. Effectiveness achieving results or benefits
  based on stated goals and objectives
• Appraisal of the planning system
• Determination of the extent to which results are
  achieved
• Identification of factors inhibiting satisfactory
  results

9
Operational Reviews Phases

• Planning
• Work programa (audit plan)
• Field work
• Development of findings and recommendations
• Reporting

10
Criteria for Selecting Critical Areas

• Areas with large numbers in relationship to other
  functions
• Areas where controls are weak
• Areas subject to abuse or laxity
• Areas that are difficult to control
• Areas where functions are not performed
  efficiently
• Areas indicated by ratio, change, or trend
  analysis
• Areas where management has identified specific
  weaknesses or needs for improvement

11
Questions????
Powerpoint Templates