Accounting technicians scheme west africa
(e) Cash-flow crisis management
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| (e) Cash-flow crisis management When the cash outflow is in the excess of cash inflow, there is a problem. However, many businesses ignore this, either wilfully or negligently underestimating the problem or managing each crisis as it (inevitably) arises. Even profitable companies can sink due to poor cash management. Ignoring cash-flow situation often leads to problems, such as increasing operating costs and cost of finances, falling share price, declining earning ratios across divisions, vendors, etc. 10 (f) Doing it all The manager should endeavour to delegate some responsibilities, while still handling the sensitive ones. Building a team of competent employees with a set of jobs and goals leaves you to concentrate on essential issues. No job is more important to a business than effective management. A boss who is constantly doing the little things rarely has the time to concentrate on the bigger picture. (g) Inadequate control Inadequate control shows a situation in which the control mechanism put in place is not functioning well and or is not suitable for the type of operations. While nobody expects the organisation to do it all, it is essential to keep control of the business at every level and to have the right control mechanisms in place so that a potential problem can be nipped in the bud before it is too late. (h) Inadequate protection Bad things happen to good businesses everyday. Examples are flood disaster, fire outbreak, loss of key personnel, theft, etc hence, protection against risk can help secure the future of the business. This can be done by insuring the properties of the business organisation. (i) Failing to change Changes are always occurring in the external environment of the business. Failing to take note of changes in the business environment can lead to problems. What competitors are doing, changes in technology and best practices, changing government policies as well as changes in your customers buying patterns and tastes need constant monitoring so that adjustments can be made to cope with them. Download 3.37 Mb. Share with your friends:
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