“Don’t Let Your Wheels Fall Off”

Introduction

“Don’t Let Your Wheels Fall Off”

“Major problems facing businesses today with Controls and solutions to cover them”

About The Book

By RG Bud Phelps

This is my second book about the managers’ role in business, the first, “Cover Your Nut”, and was an introduction to “practical accounting in plain English for the real world”.  As stated in my first book, I have been involved in accounting and management for approximately 50 years, and luckily have been involved in various different types and styles of businesses.  I worked for a public accounting firm while attending college, and therefore had the opportunity to gain a good mixture of business experiences.  While working for the public accounting firm I was exposed to general business accounting, auditing, and also was fortunate to participate in the establishment of an extensive cost system for a manufacturing company.  This public accounting experience led me to my first accounting job, a candy manufacturer in Colorado, and  from that point in time little did I realize that my business experience would include the following – a candy manufacturing company, a cellophane printing company, a snack food company, an interior decorating and furniture sales company, a camper & trailer manufacturing company, a mobile home manufacturing and sales company, a water well drilling company, an ammunition manufacturing company, and a pet product manufacturing & marketing company.  I have also been involved in establishing accounting and cost system programs for many different types of businesses, from a service business to a manufacturing business and several in between.

Section One – Accounting Controls

We need to understand what is meant by accounting controls, and what is necessary to assure that internal controls are being maintained by management.  Internal controls will make operations more effective and efficient, and will give reliability to the financial statements.  I am starting the book with this section on accounting controls to give the reader a better understanding of what these controls mean, and how to apply tests to assure that they being used. 

Section Two – Cash Flow

We will be looking at the individual accounts making up the “Cash Flow” problems; cash, accounts receivable, notes receivable, inventory, accounts payable, notes payable, equipment, and bonuses or dividends.    Cash flow is such a broad area we really need to study each item carefully, and therefore gain a more compete understanding of the individual cash flow problems are.   In all of these assets, having the internal controls in place makes it possible to keep the cash flow problem in check.

Section Three – Cost and Availability of Insurance

We will be looking at the individual items making up the “Cost and Availability of Insurance; the insurance survey, liability insurance, building and contents insurance, health insurance, and worker’s compensation insurance.  This section will cover three of the problems listed in the top ten; Health insurance, Cost and availability of liability insurance, and Workers’ compensation insurance.

Section Four – Energy Costs

We will be looking at the items making up “Energy Costs” problems; fuel (natural gas, gasoline, diesel, and fuel oil), and electricity costs.  This section will cover two of the problems listed in the top ten; Cost of fuel and cost of electricity.

 Section Five – Taxes and Government Regulations

We will be looking at the items making up “Taxes and Government Regulations” problems; Federal taxes, State taxes, Property taxes, and unreasonable government regulations.  This section will cover four of the problems listed in the top ten; Federal Income taxes, Property taxes, State income taxes, and Unreasonable government regulations

Since the books presentation sections are as stated above I do feel that it would be helpful to list the top ten problems facing businesses today.  I have been involved in businesses for a long time and the first six of the problems listed have been around most of my career. 

                                    Top Ten Problems

1.      Cash flow

2.      Cost and availability of liability insurance

3.      Worker’s compensation insurance

4.      Federal income taxes

5.      Property taxes

6.      State income taxes

7.      Unreasonable government regulations

8.      Health insurance

9.      Cost of fuel

10.  Cost of electricity

The above problems may have a different ranking in the various areas in the country (northeast, southeast, central, southwest, and northwest), but in general will more than likely be classified somewhere in the top ten. When the problems of a business take over, without quick action by the management team, control can be lost very easily and the “wheels of business will fall off”.