Three Steps to the Accounting Process


Step one is to bring all the information about changes in the property owned by the business to one central location. That information is almost always on a little piece of paper. To ensure that it is included in the records it should always be on paper. Examples of the pieces of paper are invoices, bills, checks, payroll time cards, and contracts.

Step two is to put the information into a form that makes it easy to get it. It is hard to use the information when it is in a pile of paper. The little pieces of paper come in many sizes and shapes. It is not unusual to find that you have the fourth carbon copy and can hardly read it. This step is the process of taking the information from those little pieces of paper and making readable, chronological list of the things that have happened to change the property owned by the business.

Step three is to rearrange the chronological list into clusters of information that give management answers to its questions. For instance, management would like to separate out all the things that affected the equipment owned by the business. Or the CEO might like to know what things have happened that affect the cash in the bank.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Advertisements

Play your Cards Right


Business cards may be commonplace, but they are vital too. Wherever you are, you will do better with a formal style of card, without advertising, and with clear information in English on one side and the local language on the other.

Business card etiquette is no mere ritual. In places such as Japan a business card is both mini-resume and a ticket to the game of business; a certain amount of gamesmanship is necessary to make the best use of the ticket. The first rule is never to be without cards, any more than a samurai would be without his sword. Never being without cards in Japan means taking fifty or more cards to every meeting. The second rule is to respect the cards, keeping them in a distinctive holder. Keeping your cards in your pocket or in a cheap plastic envelop is like making a business call with a shopping bag instead of a briefcase.

The third rule is to handle the card with formality. The card is presented, not merely handed. Japanese books of etiquette even point out a variety of ways to hold the card. Fourth, try to hand cards out in descending order of rank. The fifth rule is to receive another’s card gracefully, using both hands and never stuffing the card recklessly into your pocket.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Guerrilla Marketing


Guerrilla mrketing is the type of all-out marketing necessary for entrepreneurial success. It is virtually unknown to the large corporations. And thank heavens it is. After all, the large corporations have the benefit of big bucks. You don’t. so you’ve got to rely on guerrilla marketing.

 Your size is an ally when it comes to marketing. If you are a small company, a new venture, or a single individual, you can utilize the tactics of guerrilla marketing to their fullest. You’ve got the ability to be fast on your feet, to employ a vast array of marketing tools, to gain access to the biggest marketing brains and get them at bargain-basement prices. Now you may not need to use every weapon in your potential marketing arsenal, but you’re sure going to need some of them. So you’d best know how to use tham all.

 It may be that you will require no advertising at all. But you will require marketing. It may be that word of mouth is so favorable, and spreads so rapidly, that your venture can reap a fortune just because of it. If so, you can be sure that the word of mouth was motivated by effective marketing in the first place.

 In fact, a strong word of mouth campaign is part of marketing, and so are business cards, stationery, matchbooks, the clothes you wear. And certainly your location is important in marketing. Every component that helps you sell what you are selling is part of the marketing process. No detail is insignificant to be included. The more you realize that the better your marketing will be. Its not about sales, its about profits—the dear old bottom line.

 That’s the good news. Here’s the bad: One of these days, you’re going to be an entrepreneur no longer. If you successfully put into practice the principles of guerrila marketing, you’ll become fat and rich and famous and will no longer have the lean, hungry mentality of the entrepreneur.

 Once you’re reached that stage, you wll have to resort to the textbook forms of marketing, for you’ll be too encumbered with employees, traditions, paperwork, management levels, and necessary bureaucracy to be flexible enough for gurella marketing.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Policy Structures


One of the major purposes of organizations is to relate and coordinate individuals and groups separated by task and space. The authority structure helps accomplish this by defining, at least partially, who can tell whom to do what, and who has the authority to make what kinds of decisions and to take what actions. This authority structure is supplemented with a structure of explicit and implicit policies, procedures, methods, and rules, which channel and direct many decisions and actions.

A policy is a statement of intent that is made to guide others in their decision making without being so specific as to specify decisions. Theoratically, the top executives of any company, but especially the larger ones, necessarily determine policies that help guide the behavior of people within the organization. However, in fact, people at lower levels often have an important hand in fashioning policy. This happens in two ways. First, people at lower levels make recommendations to those at upper levels. Second, people in upper levels sometimes formalize policies to fit behavior patterns that have already emerged at lower levels. In the latter case, policy follows practice.

A frequent characteristic of policy statements is that they are vague enough to permit managers to select among specific decesions, depending upon the managers’ view of the specific conditions surrounding the decision.

In addition to policies, certain procedures and methods are usually designed to facilitate work. For example, there may be eight discrete steps in a particular work process, and a sequence established for each step. Step three might involve notifying two departments that the first two steps are completed. Such a suggested process is called a procedure. It tells people when they should do something. How they do it is the method they use. The method is formally prescribed in some cases and is left to the operant’s discretion in others. Anyone who fails to follow the prescribed procedures and methods is usually open to censure if problems result. Yet much of life in organizations involves evading required procedures and methods, or redesigning them, and again the reasons are usually people-problems rather than errors in the logic of the design of the procedures and methods.

Most organizations have rules and regulations to supplement policies, procedures, and methods. Rules and regulations say what one must do or not do and often specify penalties for infractions. “No one is to punch another’s third card” is an example. There are no ifs, ands, or buts about it. It says “no one,” period.

So there is a sliding scale from guides (policies) to suggestions (procedures) to requirements (rules and regulations). Nearly all organizations include the entire svcale, but different companies may vary widely in their relative emphasis upon various parts of the scale. At the less specific end of the scale, there is more freedom but less certainty, and the reverse is true of the more specific end. Knowing where a particular organization stands on the scale is thus important in understanding how it functions.

Furthermore, there is wide variability between organizational units (eg., research division versus accounting department) in the reliance placed upon or the attention paid to the policy structure.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Efficiency and Values


The term ‘efficiency’ is a concept that has meaning only in the context of an agreed set of objectives. Such objectives can include objectives about inter-personal distribution, typically reflecting one or other interpretation of equity. Occasions when the goals of efficiency and distribution conflict of the agreed set of objectives does not include equitable distribution. Indeed, historically and still to a great extent, the dominant interpretation of ‘efficiency’ has typically included only the objective of measured economic production/consumption. We should at most call this interpretation ‘economic efficiency’ and not honor it with the label of efficiency in general. But the efficiency label has enormous legitimizing power and functions as a trump card in the modern vocabulary. No one can declare themselves against it. If a policy option is deemed inefficient that usually sinks it. So contenders try to capture the label, to serve their particular set of objectives. This is what business interests and mainstream economists have successfully done for a long time. We need ask: Efficiency by which values?

 

Mainstream economists have focused on growth of aggregate production and national income. Business and other sectional interests may focus on sectional gains but advocate these behind the language of ‘efficiency.’ Not infrequently, the policies behind an efficiency label have been less economic as well as less equitable, and an ‘efficient’ only for elites.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Advice to Entrepreneurs


Whether it is the best of economic times or the worst, being an outrageous consumer debt is fundamentally a foolish way to live. If you have that problem start making amends. Go on a money diet. Study your spending habits to see where you waste money. Is it eating out? Ordering in? Impulsive buying? Talking on the telephone? Too many ritual splurges? Take the money you would otherwise fritter away and apply it to your credit cards—one outstanding balance at a time. Of course, you don’t want to penny-pinch yourself into a state of low-grade misery, but you do want to get into the habit of living lean. Consider it a preset for the lifestyle you may need to adopt in the early stages of your business.

Reducing your debt serves several purposes: 1) starting a business is anxiety-producing and debt-incurring enough without beginning it with a lot of extra-business bills; 2) the closer to zero your charge card balances are, the more available credit you’ll have for business purchases and cash advances; 3) should you need a bank loan to capitalize your venture your prospects will be all the better.

If you don’t have a lot of credit card debt but are presently paying off a small loan (personal, educational, home equity) that is open-ended, go on the same diet and get rid of it. That is, beef up your payments against the principal of the loan in order to pay it off ahead of schedule and save yourself some interest payments in bargain.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Next Newer Entries