Golden Business Ideas

BY STANLEY ZAROWIN

Get Controls Under Control
Every business needs some controls and supervision to enhance performance and monitor effectiveness. But too many controlsfor example, requiring multiple signatures before any action can be takencan be counterproductive. Costs go up, performance drops, and employees get the message that management distrusts them and might ignore or even subvert the rules.

This top-management problem usually comes from controls initiated by middle managers trying to protect themselves against criticism from their bosses.

Only three business areas generally need controls to ensure performance and effectiveness: customer satisfaction, corporate integrity (safeguarding against any outside illegal activity) and internal fraud prevention.

So limit controls to business-critical areas and give employees the responsibility and incentive to succeed.

Its All in the Details
When preparing job descriptions, its OK to list the specific tasks employees are expected to perform, but its better to include the outcomes for which they will be held accountable. In todays business environment, responsibilities and priorities change quickly. Job descriptions should keep up with those changes and be clear about whats expected.

Stanley Zarowin

An Invitation
The JofA publishes a monthly collection of business tips and invites readers to contribute their favorites (for attribution, if you like).

Send your ideas to contributing editor Stanley Zarowin via e-mail at zarowin@mindspring.com or regular mail at the Journal of Accountancy , Harborside Financial Center, 201 Plaza Three, Jersey City, NJ 07311-3881.

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.