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”.