OPINION PIECE: I am sure that you are familiar with the old saying – “the job is not finished before the paperwork is done”. This can apply to many situations, some more humorous than others.
It is certainly very applicable to the accuracy of the financial statements for your business. “Profit and Loss” (P&L) cannot be accurately stated unless the balance sheet reconciliations have been performed AND the reconciling items analysed to ensure that they will not potentially have an effect on the P&L in the future.
Unfortunately, laborious tasks like this take time if done properly but the benefits are that you should no longer be on the receiving end of as many horrible surprises. In many instances, the financial staff perform the reconciliation and if it balances, it is a job well done. Boxes are ticked and everyone is happy.
I have seen so many instances of balanced recons not being reviewed by general management. The reconciling items are really where the rubber hits the road and, in most instances, the more reconciling items there are, the more it shows that processes are not working as they should. Reconciling items are often the result of a poor process somewhere.
Obviously, there are many instances where reconciling items are necessary, and these are mainly as a result of timing differences (bank recons, debtors and creditors recons etc). Additionally, older items are usually far riskier and should be given the necessary attention.
Long recons take time, and if reconciling items are kept to a minimum, they will take less time, which means that your financial staff can be more productive and spend time being proactive instead of reactive. Clean and accurate recons are one of the signs of a well-run and efficient business.
Be sure to make “recon reviews” a permanent item on your “to do” list.
South Africa is facing a growing threat to its automotive industry, economy and public safety – Grey vehicle imports – according to a statement by Vehicles Fact Verifications Systems.
Thule South Africa are expanding their local product offering with the launch of three new products that epitomise the brand’s ethos of “Bring your life”.
Call it a job well done or maybe more of a masterclass performance. This is some of the ways to describe CMH Honda Hatfield’s recently winning the overall Honda Dealer of the Year award.
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If you are not taking care of your customer, your competitor will.
Bob Hooey
Call it a job well done or maybe more of a masterclass performance. This is some of the ways to describe CMH Honda Hatfield’s recently winning the overall Honda Dealer of the Year award.
The Eastvaal Motor Group has added Kia and Renault to its existing portfolio in Secunda and revamped its Ford and Mazda dealership as part of the process.
The critical need for trained staff in automotive retail dealerships is underscored by the increasing number of new and returning vehicle brands entering the South African market and establishing trading networks across the country.
