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Criteria - Feasibility for Purchasing New Equipment

This standard operating procedure outlines the criteria for determining the financial feasibility of purchasing a piece of equipment you’re company. It can also be used to address the plausibility of conversion from a lease position to ownership.

It will also provide a system of determining the best method of financing a purchase or sale by either waiting until the entire item can be paid for with cash or financed by a bank loan.

GENERAL

The decision to invest company funds in capital facilities (equipment, vehicles, buildings and other depreciable assets) is a matter of management judgment. Such decisions have far-reaching effects on the progress and profitability of the business because of the long range nature of the capital commitments.

A number of sophisticated financial criteria are available to aid management in judging the merits of various proposed capital expenditures. All such criteria are confined to dealing with measurable quantities or forecasts as opposed to “intangible” benefits. If used, the value of financial measuring sticks must be easily understood. Consistently applied, they furnish an objective and standard method of judging the merits of any proposed capital expenditures. They do so by stressing profitability, which is the prime reason for being in business.

In most cases the proposed expenditure is at a level which, even though apparently attainable, could still be difficult for a medium sized company to handle. A simple quick analysis is all that is necessary to assist in this decision making process.

Management, therefore, needs a quick and easy process for determining the financial/operational feasibility calculations such as the method illustrated on Form A.

Once the feasibility of the purchase/new service has been established, the next step is to determine whether to “outright” purchase, finance, or lease. Form B will assist in this determination.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

COST CUTTING vs SALES INCREASES, what to do now.

The purpose of this standard procedure is to define and explain business
profitability and the effects of pricing and expenses on profits. Also, it sets
forth rationale for management control at Leon SCD Unlimited, Inc.

PROFITABILITY - COST CUTTING vs SALES INCREASES

Businesses survive and prosper, or flounder and fail, in a direct relationship to
profitability, more so than a direct relationship to generated revenues.
Therefore, all owners, managers, and hopefully, all employees must place a
greater value on profitability as opposed to gross revenues.

A major concern to increase profit underlies all business improvement activity,
whether the focus is on proper pricing, sales planning, product presentation
(advertising), management training, organization, or employee productivity.
From this premise, the improvement activity proceeds and profitability is
achieved systematically.

Most attempts to improve profit revolve around increasing revenue. As long
as the business is making a profit, this approach usually works, but in terms of
effort required, it can be compared to “driving a railroad spike with a tack
hammer.” The reason, which is not always obvious, is that $1.00 of revenue
is not $1.00 of profit. In contrast, a cost reduction or an expense savings of
$1.00 is exactly $1.00 of increased profit.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

COACHING and changing marginal performers to super stars

• Coaching is an on-going process designed to help the employee gain greater competence and overcome barriers to improving performance.

• Coaching differs from training, which is a structured process to provide employees with the knowledge and skills to perform job tasks.

• Coaching is appropriate when the person has the ability and knowledge but performance has dropped, and he or she has not met expectations.

• Coaching involves a change in behavior. The idea is to move the employee from where he or she is to where you want him or her to be.

• Coaching is not the same as counseling. Counseling is problem solving directed at personal issues that are affecting or have the potential to affect performance. Very often counseling involves personal problems such as marital and family problems, substance abuse, and emotional and psychological barriers. The manager should not try to counsel but should serve as a resource person, directing the employee to a skilled practitioner for further professional help.

To get the most from this module, take a moment and identify an employee whose performance you would like to improve through coaching. You will work with this example as you move through the program.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Cash Flow Forecasting and Analysis. This is a must know and understand your companies cash flow for owners.

The purpose of this standard operating procedure is to outline the concepts, importance, and uses of Cash Flow Forecasting and Analysis at your company.

PROCEDURE OVERVIEW

A cash flow projection is a forecast of cash funds that you anticipate receiving and distributing over a given period of time with the anticipated cash position at specified times during the period being projected.

Although cash flow forecasts may be developed for any period of time, we suggest that you forecast and monitor cash flow on a weekly basis for the next 12 months. You may then decide to forecast your cash flow on a biweekly basis if you have established your ability to predict your cash position consistently.

OBJECTIVE

The goal of cash flow forecasting is to determine deficiencies or excesses in cash flow that may occur in your business during the periods for which the projection is prepared.

Whenever cash flow deficiencies are revealed, your financial plans must be altered until a proper cash balance is attained. Some alternatives for you to consider when you project a temporary negative cash flow are

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Budget Principals for Small Business owners

A budget reveals management’s expectations with regards to revenue and costs for a future period. It predicts a company’s future cash position, taking into account cash in-flows and cash out-flows. Budgets are used for planning and control purposes. Companies prepare many types of budgets including sales, costs of goods sold, expenses, and pro-forma income statements, etc. Financial forecasts are the basis for budget preparation, and they generally start with sales forecasts and the predicted associated costs, often as a percentage of sales.

A comprehensive budget is a formal statement of Management’s expected and preplanned performance. It serves as a control device to help measure performance against the plan and analyze variances so changes can be made to improve future performance.

Prior to the development of a budget certain questions must be asked and assumptions made about the future of the business.

Budgeting can also be used as an effective device to evaluate “what if” scenarios using various alternatives so the best course of action for achieving the company’s goals can be selected.

The budgeting process starts with a definition of goals to be obtained during the budget period.
In developing budgets, two primary approaches are used: Traditional & Zero Based Budgeting.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Break Even – A must know number for all business owners

The purpose of this Standard Operating Procedure is to explain the concept and describe the methods of calculating the break-even point (break-even sales volume, break-even per job, etc.) for YOUR COMPANY.
In order to calculate break-even in sales volume, certain statistics, or assumptions used as statistics, must be tabulated or estimated relative to the cost of operations, the overhead to be absorbed, and general operating expenses.

The break-even point in sales volume, or in special application to a particular project, is defined as “The point in sales volume, or revenue, where direct costs have been recovered, and fixed overhead expenses have been absorbed and at which profit begins.”

In the above definition, several elements are underlined. Terminology is significant, since terms such as direct costs, fixed costs, fixed expenses, and overhead are interpreted differently. The point being, a statistical base for calculating break-even is necessary.

Another point: operating expenses and administrative expenses (both variable and fixed) are the expenses, which must be borne, or paid for by the income generated.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

ADA Explanation and Guidelines for Small Business

The purpose of this Operating Procedure is to introduce and explain to your company management the methods of compliance with the Americans with Disabilities Act of 1990 (“ADA”); Titles I and III. You have reached the threshold level of the 15-employee base, which requires you to incorporate the ADA information in your operational methods, your internal documents, and methods of interviewing. The Act has been implemented in phases; the final phase (affecting Employers with 15, or more, employees) became effective on July 26, 1994. We feel it best to give you the information, and to incorporate its influence in the documentation given to you as part of this project.

The ADA was enacted to prohibit discrimination “. . . against a qualified individual with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, their compensation, job training and other terms, conditions and privileges of employment.” (Ss 12112, Sec. 102 of the Act). The underlying premise of the employment section (Title I) of the law is people with disabilities who are able to work should have opportunities to do so. Employers must make reasonable accommodations to ensure these opportunities exist. Violations of Title I provisions can cost an employer as much as $ 300,000 for multiple violations and the lack of corrective actions.

The ADA does not prevent an employer from seeking information needed to evaluate a candidate; it does, however, restrict the scope and purpose of your questioning. (That is, it places limitations on how an employer may obtain the information and requires evaluation of whether or not the information is truly required or merely conversational curiosity and not related to job performance.) Many of the accepted questions taken for granted on employment applications, and in interviews, can no longer be asked.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site under the HR-Employees Policies Category. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Accounting Basics for Non Financial Executives, You have to know your numbers.

The purpose of this Standard Operating Procedure is to provide a functional knowledge of accounting, to relate this information to the general ledger system, and to familiarize owners and managers with Balance Sheet and Income Statement considerations.

This Operating Procedure on Accounting Basics is not designed to make you an accountant, but to give you a basic understanding of some accounting terms, principles, and reports.

One of the first relationships you should establish in your community is with a knowledgeable, well-respected Certified Public Accountant (CPA). He or she should be able to provide you with valuable assistance on your financial statements and to guide your working relationship with your new business partner, The Internal Revenue Service (IRS). It is recommended that you try to find a CPA that is currently working with small and medium sized companies in a related SIC classification to yours.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

The purpose of this standard operating procedure on attendance and absenteeism policy for Your Company is to provide managers and supervisors with a consistent, fair approach to identify and notify employees who are experiencing excessive absenteeism or tardiness problems.

Each employee is important to us as an individual. The number of employees in our work force is related to our requirements, thus their presence directly affects our total effort. When an employee is absent, it presents a hardship for the company and for the fellow employees who must cover the job.

This Operating Procedure applies to all regular full-time employees of Your Company.

THE POLICY

The attendance policy is intended to be a positive approach to make employees aware of the results of poor attendance. It is designed to notify them immediately when a problem exists and to give them ample opportunity to correct their problem before the company is forced to take progressive disciplinary action.

It is the policy of Your Company that all employees maintain an acceptable level of attendance to remain working with the company.

Failure to maintain an acceptable attendance record may be cause for disciplinary action up to and including termination of employment.

The attendance report, kept by the manager or supervisor, will be the control document used to determine individual excessive absenteeism and tardiness through comparison of an individual’s number of infractions against the established guidelines.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Dick Cavanaugh
Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Evaluating Employee Performance

The purpose of this operating procedure is to outline and define an employee performance evaluation system for your company.

This system is designed to be positive and constructive for all concerned and for the company. For some reason the word, “evaluation,” has a certain negative sound to many people; however, the intent of a good evaluation system is not to find fault, but to develop better associates and, therefore, a better company.

Managers form opinions about each associate assigned to him/her, and associates do the same thing about the quality of supervision they are receiving. At times these views are different. This evaluation system will help to minimize the differences in these opinions by ensuring that both the associate and the supervisor more clearly understand their roles in this most complex working relationship.

Most company associates want to do as good a job as possible - not just working harder, but working smarter and more efficiently. The objective Employee Performance Evaluation, coupled with coaching interviews and constant feedback, is an excellent method of helping associates become better employees of the company.

Employees, once they know their specific accountabilities through Job Descriptions or Tasks and Duties Lists, generally desire a periodic evaluation of their performance . . . the same here at your company as it is at any other company.

An effective evaluation procedure provides management the means to recognize strong performance and realistically discuss and design improvements in weak performance. Evaluating an employee’s performance is not an easy task, nor is it always a pleasant one - especially in the case of a substandard review. However, it is the responsibility of each manager not only to your company, but to each employee as well, to evaluate and discuss job performance on a continuous basis.

The experience must always be positive - even a substandard review can be viewed as positive by the employee if it provides the means for him/her to improve job performance in the immediate future.

You have been reading the introduction of this Standard Operating Procedure, to get a copy of the complete SOP go to the Products Page of this web site under the HR-Employees Policies Category. Click HERE http://Jules-Recommends.com/Products-Page/ or use the list of categories to the right of this blog to navigate to your selection.

Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Library SOP’s are FREE from this web site

Standard Operating Procedures for every small business in America.

An extensive library of “How To” Operating Procedures, Policies and Standard Operating Procedures (known as SOP’s) that provide detailed written procedures for every function within a small business environment. These Standard Operating Procedures are complete and finished documents (“not templates”). They are ready for use.

These Standard Operating Procedures have been written, collected, and paid for over many years of on-site consulting service while “fixing” broken and dysfunctional companies and training their owners, managers and key personnel in the requirements for being effective managers of people.

These Standard Operating Procedures are proven documents that have been customized and used in tens of thousands of companies across the US.

These documents are available for you free of charge, and we offer to customize each document that you ask for with your company name prior to sending the document to you.

You have been reading the introduction of Standard Operating Procedures from our library, for the rest of the information on how to get the SOP you need for FREE from the “Products-Page” of this web go to the pages listing above or click on the category list to the right.

Email: rcavanaugh@cognizancepartners.com
Or Call: 626-233-2232

Discounted Intuit, QuickBooks products and Training.

Announcing the Opening of the New Professional Office of Accounting Essentials, Inc.

Accepting New Clients

Pascoag, Rhode Island, March 16, 2009 - Accounting is a vital part of every business. In today’s economy, small business owners have very little time or money to spend on accounting and must dedicate their valuable resources to growing their business and generating income. Accounting Essentials, Inc. was established with today’s small businesses in mind. The company’s mission is to provide small businesses with the “essentials” of accounting without breaking their budget.

Accounting Essentials, Inc. provides a variety of accounting services, including but not limited to outsourced bookkeeping, controller services, and training. “Outsourced accounting/bookkeeping is a popular and cost effective alternative to employing a full time bookkeeper” says Ms. Nunes. Outsourcing saves small businesses the cost of salary, payroll taxes, employee benefits, worker’s comp insurance, as well as costs associated with recruiting, hiring and training.

Adept at implementing a variety of accounting softwares, Accounting Essentials, Inc. specializes in QuickBooks® accounting software, providing expert setup, support and training to a myriad of industries.

Accounting Essentials, Inc. was recently founded by Beth A. Nunes, MBA. Beth earned a Master of Business Administration degree with a concentration in Accounting from Johnson & Wales University and is currently studying for the CPA exam. She has 6 years of Public Accounting experience along with 18 years of bookkeeping experience and has been a QuickBooks® Professional Advisor since 2003. To find out more, please click HERE to visit www.AccountingEssentialsInc.com.

Contact:
Beth A. Nunes, President
Beth@AccountingEssentialsInc.com
401-451-6139

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