Stock Control
- To improve stock control, utilise a stock analysis chart so your team members understand the financial contribution that is potentially available from each item or section of stock.
- Think about bonuses and other incentives to generate a desire from your team member to sell the higher margin lines of stock.
- Determine a desired stock turn rate for each stock item and ensure your team members, involved in the sale of product, have been informed of the targeted stock turn rate.
- Analyse the stock performance at the end of each week. This would relate to:
- Gross percentages generated for various items of stock;
- Stock turns achieved; and
- Sales person’s individual performance, showing total sales, gross profit margin and gross profit percentage achieved.
Effective Cash Control
- If you’re handling cash within your business, you need sound systems to protect the cash, including:
- Documentation of cash register receipts;
- System to ensure cash is banked intact daily; and
- Establishment of an appropriate system for the security of large sums of money located on the business premises.
Work in Progress Control
- If your business is operating a work in progress system, it is recommended that appropriate controls are introduced, which include making sure all materials and subcontract invoices, for purchases of products for individual jobs, are charged on a progressive basis during the month, to the job for which the work relates.
- Ensure that all labour, including labour on cost, is charged to the job.
- Ensure that progress claims and progress claim invoices are processed regularly.
- Calculate the contribution received on each completed job.
