System analysis entails reviewing each department’s interaction with accounting procedure. We understand the complexities of system analysis and the essential role it plays in developing a successful small business.
A small business owner has to be passionate about what he or she is offering to others. This drive for success creates self-mastery skills and self-discipline. An owner or manager should not just walk into work and dive into emails or the Internet without any direction. Enormous time can be used up without a clear purpose and priority. Success doesn’t work that way. The most successful people discipline themselves and work hard to master their trade. Disapline, for the business owner, is an “inside job” where commitment to the outcome keeps him or her on track. Each day has a purpose that is bigger than the task and successful people are willing to do their personal best each day. Self-discipline is mastery over oneself. This includes knowing when one needs to take a break or get down to business, and understanding how many billable hours are needed each day to make each month’s monthly billing.
One creates time tables to reach a defined goal that has been laid out in the business plan. Here one must really understand one’s strengths and weaknesses to reach the defined goals. Being realistic about one’s limitations is essential.
Efficiency occurs when all systems are in place within each department. When there are systems in place for each position within a department (e.g., payroll, sales, purchase orders, accounts payable, monthly reporting, accounts receivable), then the department can run efficiently and the ground work is in place to build upon.
When efficiency is in place consistency takes on its role. Consistency allows the company to run smoothly. Any anomaly or glitch will jump out quickly in a department. This would include an employee not doing their job as specified. The owner or manager has a responsibility to confront the employee to resolve the issue. When there is no system in place this problem festers. The system becomes broken, and efficiency and consistency break down along with it. Therefore, it is important to have systems in place to discover where inconsistencies are impeding optimal performance.
The written contract is essential to create clear boundaries for each party in an agreement. The client has expectations, as the person who is going to perform the services. The contract lays out these expectations and clears up any misconceptions before services are performed. Always have a contract. Both parties will be glad the agreement is in writing when there is a disagreement about something once the job is underway. The contract also helps keep goals intact.
Smart Business for the Small Business™