Apr 10
29
One primary goal for every manager should be saving money for the company. This is the ever-present task of all employees. That means adopting a concern for corporate profits. People in direct touch with customers tend to think of topline growth as the logical way to increase sales. And that belief is entirely valid.
Higher sales are essential to higher profits, assuming that costs and expenses are also held in check. But only a small number of departments are involved directly with sales and with customers. Without direct customer contact, how can you improve profits? The answer is by holding down expenses; and that is achieved in only one way: establishing and monitoring internal controls, one of the most important of which is budgeting itself. Internal controls are generally thought of as completely sepa¬rate from budgeting.
For most employees, “controls” means telephone logs, requisitioning systems, preapproval rules for expenses, and locking up of valuable inventory. All these are highly visible forms of control, but there are others: cash handling procedures, a departmental petty cash fund, a supervisor being required to initial check requests, or a anager’s daily meeting with staff.
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