Why is it a good idea for the business owner to open and review the mail?

Seems like a trivial task, too much work, do not have enough time to do this. Think again, ignoring this task may cost you more than just time. I always made it a daily task to open all of the mail and distribute it to the appropriate people and departments. Yes it does take time, but ignoring this may end up costing you and the company money and a headache during an audit.

As a matter of procedure you should review all accounts payable invoices, accounts receivable checks, and junk mail. Junk mail, you ask, well junk mail can become an expense to the company if one of the employees decides that they should attend a seminar, order a specific quantity of office supplies to receive a gift, or order any number of items that come in the daily mail. You should sign off as approving the accounts payable invoice, know which customer is paying, and open the bank statement to review.

I’m not saying that all employees are not trustworthy, but it only takes one to really hurt your business and your reputation.

I am not advocating micromanaging here, this is a sound business practice , and I cannot tell you how many companies that I have worked with have suffered because this procedure was not thought of, not part  of the office procedure, or simply ignored.

The best place to start is to have a sound purchasing procedure as part of the accounting departments’ systems and procedures.

If you want more information or assistance in setting up this procedure, please contact Net Profit, Inc. www.netprofitinc.org.

 

 

 

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