Fundamental to any commercial operation is being paid for any sale. The hard work associated with a sale together with costs of product and marketing have all been incurred. Yet we still come across many businesses who simply don’t know whether they have been paid or not!
The main reason for this is simply that they don’t have a system to ensure that all sales are invoiced.
The cost to any business of weak controls in this area can be catastrophic. Like many things, however, the solution is relatively simple. It comes down to having a good physical and accounting process in place.
A good exercise is to produce a flow chart of how your goods and services are stored, processed and billed. This will identify physical and accounting weaknesses to be addressed.