Administration costs business

Poor administration and information systems can be time consuming, confusing and cost businesses immense turnover loss, says A1 Advanced Office Solutions consultant Jenny John.

“Lack of management information control and poor records management is one of the main reasons for small business failure,” she said.

“Aside from possibly being inadequate in terms of Quality Assurance, ineffective administration and recording systems result in no management control and high stress levels because of work overloads.

“If work is constantly being re-done due to mistakes and omissions and staff are constantly blundering their way through mountains of paperwork, something needs to be done about your information management. Your systems and processes could be letting the company down.”

Ms John said the solution involved auditing and analysing the present system to identify problem areas.

“Customised, automated spreadsheets designed to individual company needs can free up valuable staff time, as do monitoring systems designed to complement your accounting information requirements.

“Forms should be re-designed to reduce paperwork and maximise information, with paper flow between departments designed to maximise efficiency. All back data entry work should be done to make systems current and immediately operational.

“The most effective forward company planning is grounded in a strategic thinking approach behind all systems — and internal quality audits should be regularly undertaken to monitor the continuing efficiency of these systems,” she said.

Ms John said A1 Advanced Office Solutions recently identified the causes for $1/2 million in losses over a two year period for a local company through the introduction of a monitoring spreadsheet system.

She feels this verifies the fact that administration systems are “the backbone of the company, and the foundation on which to build a solid business structure.”

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