Baseline

Assessment Tool

Enterpriseroom Business Assessment

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Ideal standards against which to measure and compare the business. (Listed at top of each worksheet)

The efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organisation. Maintenance of proper accounting records and the use of accounting information to produce timely and accurate reports. Observation of best practice governance and business ethics. Best practice of accounting management and successful implementation of proper accounting systems.


What to do

Financial Management, Leadership and Strategy, Operations Management, Sales and Marketing, HRM, SHEQ. These sections are made up of sub headings or groups within a business function such as Financial Management or Human Resources. Each of these groupings contain a series of questions. These are only leading questions, i.e. prompts for your discussions. You do not have to ask these questions specifically. However you must be able to assess and score the group


Data entry

Enter your assessment of each area within the boxes outlined in blue. Complete the summary and recommendation sections at the bottom of the sheet. The assessment against each sub heading will be transferred to the Detailed Report (see DetailRep), while summary and recommendation data will also be transferred to the 2 page summary and Assessment Recommendation reports. The Mentor will use the Assessment information and Recommendations as the basis for Mentoring decisions and planning interventions. Therefore the Mentor is dependent on the quality of information you provide.


Scoring

Enter a score. As a guide, a definition of scores for 1, 3 and 5 have been provided. These descriptions are customised for each group within the business function. You may enter a score of 1 o 5 using the definitions as a guide. These scores are reflected in graphs in the 2page summary report and the Assessment and Recommendations report.

Business Function: Financial Management

Financial Management Objective: The efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organisation. Maintenance of proper accounting records and the use of accounting information to produce timely and accurate reports. Obsevation of best practice governance and business ethics. Best practice of accounting management and successful implementation of proper accounting systems.

Business Sub-Function
Lead Questions


Recordkeeping

  • Do you keep all key documents including leases, registration documents, tax documents, asset register etc.
  • Are the business financial record current?
  • How are orders taken? Do you keep an order book?
  • How are sales invoiced? Do you keep an invoice book or generate invoice from system?

Accounting Systems

  • Who is responsible for day to day financial administration and controls e.g. internal financial clerk, bookkeeper, accountant?
  • What accounting systems are in place e.g. manual spreadsheet, Pastel?
  • What reports are you able to get from the system?
  • Is the an accounting system to record VAT, PAYE, SDL and other tax obligations?

Budgeting

  • Does the business have a budget for the next 12 months? What assumptions is the budget based on?
  • How often do you review the budget?
  • What are the key performance indicators that you track in the budget?

Costing

  • How do you determine cost of products / services?
  • What are your gross margins for key products / services? Are they consistent with industry norms?

Cash Management

  • Does the business have adequate cash resources, and how is the cash managed?

Petty Cash Management

  • How do you manage petty cash?

Financial Planning

  • How do you plan and provide for ongoing funding requirements of the business?
  • Has the business ever secured external financing? From whom?
  • What methods are used to secure capital for expansion or purchase of equipment?
  • Does the business have problems securing capital?

Payroll

  • Do you have a payroll system that can generate payslips as well as well as calculate deductions for PAYE, UIF, SDL etc. and reconcile leave days?

Debtors Management

  • Describe the debtor vetting process.
  • How do you manage your debtors? How are collections made?

Creditors Management

  • How do you manage creditors?

Banking

  • Do you have a separate bank account for the business?
  • How often do you bank?