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  • How to Conduct a Successful Audit?

    How to Conduct a Successful Audit?

    Conducting an audit can be more difficult than it seems. However, it is mandated by ISO Management System Standards. Successful audits can be great tools for your organization. They let you know what you are doing right and what needs to improve. Internal audits can help you streamline your company’s processes to promote efficiency. They can give you insight into compliance issues. The following are a few tips to conduct a successful audit.

    1. Initial Planning

    Initial audit planning is important. It ensures that everyone on your team knows the purpose of the audit and what is expected of them. During the initial planning stage, you need to answer the following questions;

    • Does the audit aim to address specific enterprise risks?
    • Why is the audit project important?
    • How will the audit help the organization meet its objections?
    • Has this process been audited in the past? If so, what were the results?
    • What significant changes have been made since the last audit?

    2. Schedule an Open Meeting

    Schedule a meeting that involves the administrative staff and senior management before conducting an audit. The open meeting is a chance to present the scope of your audit. During the audit, you can determine the timeframe of your audit and discuss other important issues. Heads of the department may inform members of their teams about possible interviews with the auditor. Take the following steps to prepare for a planning meeting with the relevant stakeholders:

    • Validate your flowcharts and draft narratives with experts in the subject  
    • Outline important process steps by flowchart, narrative, or both.
    • Create a pre-planning questionnaire to facilitate the meeting

    3. Choose the Right Audit Software

    The right audit software can make work easier for you. It can help you get a closer look into the finer details and inner workings of your business. The tools in safety audit software can improve your general performance. They can help you identify inefficient procedures and under-performing departments.

    If you completely rely on traditional auditing, you may spend a lot of time in the auditing process. Traditional auditing demands the use of manual methods in many functions. The larger the organization, the more difficult traditional auditing will be. Automated auditing software eliminates the possibility of human error and you can do everything without disruptions.

    4. Have a Clear Set of Processes

    Having a set of processes will make your job as an auditor a lot easier. The main purpose of having a specific audit process is to standardize your operations. Standardized processes use the best practices. A standardized process will:

    • Communicate audit expectations effectively
    • Mitigate risks
    • Engage staff members
    • Maintain consistent quality
    • Make it easy to identify what went wrong
    • Automate repetitive tasks and save time
    • Promote efficiency

    Following specific audit processes will protect you against audit error. Mistakes can have significant consequences.

    5. Create an Audit Program

    After understanding the process and risks involved, you need to create an audit program. The program should include the following details:

    • Process risks
    • Process objectives
    • Control attributes such as:
    • Control frequency
    • Whether the control mitigates the risk of fraud
    • Whether the control prevents or detects risk events

    6. Request Financial Documents

    Once you have notified the organization about an upcoming audit, you may request the documents listed on your preliminary checklist. The documents include receipts, ledgers, a copy of the last audit report, and original bank statements. Other important documents include the organizational charts, copies of their standing rules and bylaws, and copies of the committee and board minutes.

    7. Maintain Independence and Objectivity

    The audit activity has to be independent and the auditors must remain objective. If an auditor has been assigned to a department, they should have no professional or personal association with the processes being audited. They should be able to report all non-conformities without fear or bias. As an auditor, you have to examine all the available evidence objectively before determining the findings.

    8. Expertise In Subject Matter

    Conducting an audit based on information from the internal company is a good idea when you are trying to assess process controls and the effectiveness of operations. However, you need external expertise to ensure that your audit matches the changing landscape of the industry. Use at least one of the following when evaluating the design of your processes:

    • Relevant blog posts
    • Subject Matter Expert (SME)
    • Articles from top business periodicals

    9. Initial Document Request List

    When preparing to conduct an audit, you need to request and obtain the relevant documentation. Make your request for the documents before starting the planning process. They may help you understand the relevant applications, processes, and important reports. Some of the most important things to request include;

    • Access to the main applications required in the process
    • Procedure documents, policies, and organization charts
    • Reports used in managing the efficiency and effectiveness of processes

    10. Conduct Onsite Fieldwork

    Gather information from an open meeting and use it to finalize your plan. You can conduct fieldwork by speaking to the members of staff and reviewing the processes and procedures. Evaluate internal controls and ensure that they are adequate. If there are any problems, discuss them as they arise and give the company a chance to respond.

    1. Draft a Clear Report

    After fieldwork, you need to prepare a detailed report of your findings. Important things to include in your report include mathematical errors, payments that were authorized but not paid, posting problems, and any other discrepancies. Write a commentary with the details of your findings. Recommend solutions where appropriate.

    Businesses all around the country need procedures to record, monitor and calibrate the functions, inputs, and outputs of different departments. They need to assess the efficiency of all departments and their contribution to the company’s goals. Without a proper auditing process, it may all be difficult or impossible. Employers and their supervisors may not always provide objective feedback. Relying on their opinion may give you inaccurate information. Audits add credibility to your financial statements. They give your shareholders confidence and help you detect and avoid fraud.

  • How Can You Give Your New Business The Best Chance Of Success?

    How Can You Give Your New Business The Best Chance Of Success?

    The most important thing to you when you’re starting a new business is figuring out how you can make it successful, right? All every business owner wants is to run a successful company that provides a high-quality service to clients. But, do you know some of the things that you can do to give your business the best chance of success? If the answer is no, then you need to keep reading down below where we’re going to give you all of the information that you need. 

    Hire The Right People

    You’ve got to make sure that you are hiring the right people. Your business is never going to get anywhere if you don’t have the correct teams and employees looking out for you. What we mean by this is that there are some people who just aren’t interested in working, so instead, they are happy to simply sit back and allow everyone else to do the work. You don’t need these people on your team because they are just a constant drag on everyone else. Instead, you’re going to need people who are dedicated to providing a high-quality service or product to your customers and also doing everything they can to make a successful business with you.

    Your team is going to be the backbone of your business. At the end of the day, experience must come second to a willingness to learn and succeed. Those who are willing to put the effort in and learn are more important than those who think they know everything because they’ve held a similar role previously. 

    Make Sure You Are Insured

    Something else that you need to do is make sure that you are insured. When it comes to your new business, the last thing that you want is for something to happen and everything to go down the drain. We highly recommend that you speak to an insurance broker and see what they can do for you. For example, if you are insuring your house cleaning business, they will let you know what kind of cover you need and what you can ignore. This is the best way to make sure you’ve got the right level of cover without going overboard.

    Learn About Marketing

    The final thing that we are going to suggest is that you learn about marketing. The more knowledge you have in this area, the better you are going to market your business. You don’t have to hire a professional if you don’t want to because once you have the knowledge you need, you will be able to create a fantastic marketing campaign on your own.

    We hope that you have found this article helpful and now have a better understanding as to how you can give your business the best chance of success. Take this advice, and you should be able to give your business the best boost possible to see success on the market. Good luck, and we hope that this works out in your favor.

  • How To Calculate Your Credit Score

    How To Calculate Your Credit Score

    Whether you are applying for a loan or trying to take out a second mortgage on your house, you will definitely need to know a thing or two about credit score. It might come as a surprise to you that beyond the financial matters, your credit score can have an impact on your career as well. Many companies now look into potential candidates’ credit scores before they can decide whether to offer them a job or not. Furthermore, a poor credit score can be a deal-breaker for a hesitant landlord who will likely refuse to take you on as a tenant, assuming you won’t be able to pay your rent on time.

    In the United States, three main credit bureaus are responsible for issuing credit reports. However, it is not uncommon to find discrepancies between the figures issued by each due to falsified information. It is your responsibility to constantly review your credit score and make sure that your credit information is correct and up to date. To do so, you need to have a clear understanding of the calculation process. To calculate your credit score, you will need information about the below five factors that combine to make up the final figure. So, continue reading on.

    1. Payment History

    Your payment history is perhaps the most important aspect in determining your creditworthiness. This information lets potential lenders understand what kind of a borrower you are and helps them identify the level of risk associated with lending you their money. Creditors consider how many times you defaulted on your payments, how often do you miss a bill’s due date, and the amount of outstanding payment that you currently have. Your late payment information accounts for 35% of your credit score. This should give you an idea about the importance of your payment history and how by doing some simple changes to your payment behavior, you can actually boost your credit score. If you can, always aim to pay your bills once you receive them. More often than not, having a poor credit score is a result of negligence rather than financial capabilities. 

    2. The Amount of Money You Owe

    The amount you owe is a depiction of your current and future financial stance, which is equally as important as your payment history. How much you currently owe to all of your creditors, including credit card companies, car and house insurance, and other outstanding payments, has a huge impact on your credit score. For a high credit score, this figure should be significantly lower than your aggregate income. According to the credit experts at 3creditscores.net, lenders are more willing to loan money to those who prove that they can live within their means, as it makes them seem like financially responsible individuals. On the other hand, accumulating debt left and right and owing thousands of dollars in whichever capacity will make you seem like a high-risk debtor. Lending institutions are profit-generating establishments after all, so unless lending you money can help them make any, you won’t really have a chance. The amount of money owed makes around 30% of your final credit score, which is not a small portion that you can afford to ignore. 

    3. Credit History Length

    If you want to be judged creditworthy, you need a long enough credit history with lots of data for credit bureaus to review and declare you as such. While this might seem counterintuitive, but it is actually true that the more you use your credit, the more likely you are to have a good credit score. Many people think that the best approach to protecting their credit score is to distance themselves from credit altogether and just let it be. However, it is all about being a responsible debtor who can commit to timely payments and full settlements. Credit history length accounts for 15% of your credit score. Although not as big of a portion as the previous two factors, yet it is still worth dedicating the time and effort to make sure you build a long and healthy credit history.

    4. Accounts Diversity 

    Holding a variety of accounts other than the basic personal and savings will increase your creditworthiness. Banks and other lending institutions value clients with diversified accounts more than others who hold standard ones. Home loans, retail, and online shopping credit cards are all types of accounts that creditors like to see and can improve your chances of being judged as creditworthy. However, to make sure you are doing this right, consult professional financial advisors to help you understand the types of accounts you can benefit from and can enhance your credit score at the same time. Achieving proper account diversity will help you improve your credit score through the 10% portion of the total figure.

    5. Most Recent Credit Activity

    The final 10% of the credit score calculator is based on information about your most recent credit activity. Regardless of your reasons, opening new accounts and applying for new loans in a short period will hurt your credit score. Creditors see such ‘frantic’ financial behavior as alarming and one that calls for a harsh creditworthiness assessment. To avoid falling for this typical mistake, try to spread your financial activities and inquiries over a longer period, otherwise, make sure you at least have a good explanation. 

    As explained earlier, it is your responsibility to look into the often unmatching credit scores calculated by different credit bureaus. With the above information, you should now have a clear understanding of how to do that. However, as you probably know, calculating your credit score is only part of the equation. What is more important is how you can improve it and become a favorable debtor that creditors can trust and accept to take on. Improving your credit score is worth taking the time to look for new and creative ways to make it happen. Even if you think you don’t need it today, you should make that a priority because you will definitely need it at some point in the future.

  • How to Measure Performance of Your Business’ IT Efforts

    How to Measure Performance of Your Business’ IT Efforts

    The world of Information Technology, or IT, has changed immeasurably over the last few decades. Businesses have gone from using fixed-line telephones, fax machines, and physical document storage in the 1980s to email and server-based storage in the 1990s. The 21st century, however, has seen the biggest change in the way that IT works, with cloud-based computing has become the norm and companies switching from email to business communication platforms that all employees can use no matter where they are on the planet. These tools allow advanced efficiency as different teams in different locations can communicate and share information with each other much more easily than they could with email. 

    These modern IT symptoms are tricky to run and require careful management to work properly so it is important to be able to measure the performance of your systems to ensure that you are not wasting money and manpower. In this article, we are going to take a look at how to measure your IT efforts with KPI’s so that your business becomes as streamlined and efficient as possible, so read on to find out more. 

    Cost Per Ticket

    This is one of the easiest KPI’s to understand yet is also one of the most important as it gives you the raw data in terms of efficiency. Basically, it measures the entire monthly cost of your service desk against how many tickets they had in that month. All costs are taken into account from the salaries of employed personnel to technology and telecom expenses. Your utilities and rent will also be taken into account, effectively every expense relating to the IT side of your business. Once you know the ticket cost you can work out whether the related project was a success or not against the costs spent. 

    Customer Satisfaction

    This is one of the key metrics when it comes to measuring performance because as every business knows, keeping your customers happy is one of the most important ways of making money, and it is also easily measured based on the number of complaints that you receive. If customers are complaining about something as simple as your website’s poor readability on a mobile device, then you have immediate feedback on which to improve your IT infrastructure. Asking customers to comment on your performance is the best way of measuring whether this department is operating efficiently or not.

    Feedback Resolution

    When you receive negative feedback, the next step that you want to measure is how long it takes to resolve the complaint that you received, because customers expect action today, not tomorrow. You can easily measure this based on response times to the initial complaint, and then how long it takes for the whole issue to be resolved. Obviously, major IT issues such as a cyber attack will take longer to resolve than others, but you should keep your customers in the loop so that they are aware that you are doing all that is possible to rectify the issues as quickly as possible. 

    Use an Outsourcing Firm

    Sometimes measuring all the metrics that you need to understand your IT performance can be exhausting both in terms of the man-hours required and the sheer number of metrics to measure. Professionals from onestopit.com recommend that you use a firm that can manage your IT services to ensure that they are run as efficiently as possible. They will look at your strategy and security as well as measuring performance based on uptime, response to queries, and the difference between desired performance levels and actual performance levels, which will give you a perfect metric to understand where your IT efforts are failing. This will free up your staff to concentrate on making money whilst at the same time giving you the data that you need in order to improve your IT performance. 

    Technician Utilization

    Whether you employ technicians in-house or you outsource and use freelancers, it is vital that you measure their utilization as labor is expensive and this will be your biggest cost relating to them. If they are not working at 100%, then why not, and this is why you need to measure their labor efficiency. If you employ two technicians and they only work 50% of the time, then it is time to consider whether you really need two or not. If you get busy in the future, you could always outsource one role in order to keep your utilization high, and therefore your costs low, so it is integral that you have their utilization per ticket data to hand. 

    Technician Satisfaction

    IT technicians can be a funny bunch. Given that they are so vital to your IT function and infrastructure, the higher their job satisfaction rating, the lower the staff turnover, absenteeism, and ticket times meaning that they will be much more efficient at their job. So, by measuring their satisfaction, you have a perfect bellwether for the rest of your IT performance. You should be measuring their satisfaction at least biannually as they can be fickle as the last thing you need is a disgruntled technician as your ticket times will increase and morale will drop. Staff training schemes are a great way of incentivizing as well as offering a clear path to career progression and coaching when it is needed. Make sure you do what you can to keep your technicians happy as they are the heartbeat of your IT infrastructure. 

    As we have learned there are many different ways to measure the performance of your IT efforts. KPI’s are always useful, but perhaps the most important is the cost per ticket analysis as it tells you whether you are being efficient or not. Customer satisfaction and complaint resolution should feature highly as well as the satisfaction of your IT technicians. If you are overwhelmed by your IT efforts, then outsource to a firm that can measure performance for you, allowing you to free up your staff for more important matters. Ensure that you never rest on your laurels, and then you will have an IT department that functions as efficiently as possible.

  • Reliable Options That Will Help You Invest Your Money For Your Retirement

    Reliable Options That Will Help You Invest Your Money For Your Retirement

    Saving for retirement should be a top priority for everyone. It doesn’t matter if you’re just starting your first job or you’re about to move away from the workforce; if you have time, you have to make the best out of it. For that reason, most people start looking for profitable investments to grow their retirement portfolios. However, not every kind of investment can be described as smart, and that can only be judged according to your situation. This is why we’re going to go over effective options that will prove to be reliable ways to invest money for your retirement. 

    Retirement Accounts

    First things first, let’s talk about the retirement accounts that will hold your investment returns. You have three options: saving money in the retirement account offered by your employer, opening a self-directed IRA, or saving in a normal investment account. Let’s explore the three options in more detail. 

    1. Employer-Sponsored Plans

    Your employer may offer you more than one option to choose from or they can just offer a default account for all employees. An employer-sponsored plan can be 401(k), 403 (k), HSA, or other plans. These plans can either be traditional or Roth. A traditional plan will allow you to contribute pre-tax money, so you can escape taxes on the money you put into the account, while a Roth plan uses income after taxes, so you can get around taxes when you withdraw from the plan. One of the greatest features of this option is when your employer offers to match your contributions to the plan, which is something you totally have to take advantage of. 

    2. Self-Directed IRAs

    Perhaps the downside of employer-offered plans is that you become restricted by their investment options. Alternatively, you can open a self-directed IRA account. The financial planners on this site explain the advantages of this option, where self-directed IRAs give you more flexibility in diversifying your portfolio beyond the traditional forms of investment. You’ll still be able to invest in the traditional categories, like bonds and stocks, but you’ll have the added advantage of seeking alternative forms of investments as well. 

    3. Investment Account

    While the first two options offer the best deals for retirement investment, they have one significant shortcoming. These kinds of accounts are capped at a certain maximum regarding the money you can save on them monthly and annually. You may not have any issues with this limit if you’ve started early on, with more than 30 years left until your retirement. However, for those who’re looking for ways to catch up on their savings while nearing their retirement, a normal investment account offers them more flexibility. Unfortunately, this option won’t include any tax-advantages. 

    Reliable Investment Options

    With your savings account in place, it’s time to address the question you’ve been wondering about. What should you invest in? Technically speaking, you can invest in any category. Asset classes usually include three categories: stocks, bonds, and cash equivalents. There are also alternative forms of investment. The only factor that will restrict your freedom is the age at which you start saving for retirement, although a good retirement portfolio will usually include all of the previous forms of investment. 

    That being said, here are your options.

    1. Stocks

    Stocks are best for long-term investments; they give you the largest investment returns over the years. However, they’re highly volatile in nature, and that makes them a poor investment choice if you’re looking for a short-term investment. That means that they’re high-risk investments that you should stay away from if you’re nearing retirement, but they’re great if you have more than 30 years ahead of you to save money. A long duration of investment can also overcome the effect of inflation, adding to their investment return vs risk advantage. 

    2. Bonds

    Bonds come somewhere in between stocks and cash equivalents in both the risk factor and the investment returns. They’re not as volatile as stocks, and they’re also secure and stable in their interest accumulation. All of that makes them a safer form of investment. Moreover, you can also find bonds that provide tax-free income. On the other hand, they give less long-term returns compared to stocks. It’s common for people to change their asset allocation as they age, decreasing their investment in stocks and increasing it in bonds. 

    3. Cash Equivalents

    Cash equivalents offer the least returns, but they also come with the least risk of all forms of investment. They have the advantage of being highly liquid, allowing you to withdraw them at any time without penalties. Cash equivalents are usually used for short-term securities, and they include certificates of deposit, treasury bills, corporate commercial paper, and other money-market funds. 

    4. Alternative Investments

    In addition to the primary three investment assets, many people are increasingly seeking alternative investments. These investments can be in the form of private equity, real estate, gold, or other hard assets. Some also invest in artifacts and the like. Although these forms of investment may not be as secure or reliable as the primary three assets, they’re a great option for mitigating the risk that comes with market fluctuations. For instance, you may find the stock market crashing all of a sudden due to a worldwide pandemic. Unless you have an alternative form of investment that adds to your portfolio during such challenging times, you’ll suffer from the aftermath of that crash. 

    However, alternative investments are not available with all retirement accounts. You’ll have to open a self-directed IRA with a passive custodian to have the freedom to invest in any assets you choose. While a self-directed IRA may offer you a certain level of freedom in alternate investing, you’ll still be limited to the products your bank or financial institute sells. To invest in a more controversial way, like cryptocurrency, you’ll need a passive custodian.

    It’s never too early to start saving for retirement, but it’s never too late either. You can always start at any point in your life, although starting early surely gives you the advantage. The whole difference lies in the way you approach retirement investment. For instance, risky investments like stocks are better when you’re in it for the long-term, while more secure kinds of investment can be a smarter option the closer you get to retirement. In short, your options will significantly vary depending on the age you start saving and your estimated retirement age.

  • Building Long-Term Customer Relationships: Lessons from the Casino Industry

    Building Long-Term Customer Relationships: Lessons from the Casino Industry

    Every business should have strategies in place to help it build long-term customer relationships. Customers who repeatedly visit your business, website or any other sales channel are much more valuable over time and can transfer their love for your business to others. Building these relationships is never easy, but there are important lessons to be learned from an industry that has been able to do this over and over again – the casino industry.

    Complimentary Rewards

    A common feature among casino websites is how generous they are with their complimentary gifts. According to several surveys, only about 40% of companies not in the casino industry give customers, leads or other businesses they are building relationships with complimentary gifts.

    From free drinks and meals to hotel rooms, casinos lean heavily into this relationship-building strategy and it is relatively easy to find examples of Australian gambling websites doing this. To get started, think about what your clients and customers want. For customers, gift cards are inexpensive and work really well while for larger clients, you might have to go with something bigger.

    Taking Advantage of Events

    One of the best ways to make customers feel important is to invite them to events. Your repeat customers, especially other businesses, likely have a lot in common, and getting them together for an event makes them feel appreciated and thought about.

    Additionally, you can use your social media as a way of building these relationships by inviting people who share your products on social media to VIP events.

    Demographic Preferences and Segmentation

    Although casino players might look like they have the same needs, that is not always the case. A close look reveals that older players spend about 80% of their budget on gaming and the rest on food while younger generations spend about 30% on gaming and 70% on other activities.

    This means that if you were to come up with a marketing campaign, you would advertise your games to older generations while advertising a full-featured experience for younger generations that focuses less on gaming and more on the activities that surround it.

    The lesson here is that by segmenting your demographics and cross-referencing them with their spending habits, you can find out what they prefer. You can then invest in the products and services they are likely to spend money on. Doing this makes your customers feel catered to which improves their relationship with your business.

    Partner with Other Businesses

    Casinos know that players do more than sit at the table and play. They may need food, drinks or even hotel rooms. They collaborate with other businesses to cut deals to offer additional services to their high-end customers and big spenders. For example, it is common to see casinos cutting deals with travel companies to offer discounts to their best customers.

    To use this strategy, think about what else your top customers and clients need besides your products and services. Then, cut deals with other businesses to offer discounts to your customers and you to do the same for their customers who need your products and services. The casino industry builds strong customer relationships in ways other industries struggle to. The casino industry views relationship-building very differently, and if your business can have a closer look at how it does this, you could end up with valuable lessons that help you build stronger and better customer relationships in your business.