10 Basic Steps to Help Your Employees if They Don't Have A Salary during the Quarantine. Part 3

1.  You can issue their 13th month Salary.
2.  You can ask them to use their leaves.
3.  You can distribute your perishable  goods in your store for their grocery if you will not be operating for at least 1 month.
4. If cash is enough, you can issue weekly grocery bag to your employees during the quarantine even if they don't receive any salary.  Monthly grocery if they can budget it to last up to 1 month.
5.  If your warehouse or office is big enough to accommodate your employees, they can stay there during the quarantine.  It will also help the company to better  safe keep the area.
6.  Ask other employees to help co workers if they can help co workers with the support of the company.
7..Continue to communicate with your employees, sometimes they just need the affirmation that they still have something to comeback after the quarantine.
8.  Ask your partners, friends, family and your different support group if they can help in some basic needs of the people.
9.  Offer them a fun movie or e learing subscriptions. Instead of a quarantine, this will be a 1 month home based training for them or home based vacation.
10.Be honest if the company will not be able to recover during the crisis.  This will give them time to plan their next steps.

How to Check if you are Missing a lot of your inventory ( Internal Audit) Part 2

How to Check if you are Missing a lot of your inventory ( Internal Audit) Part 2

Step 1   Consolidate  first the actual numbers in your documents ex. Delivery receipts, Sales Invoice, Sales Return.


Step 2    Do a Monthly or weekly physical count.


Step 3    Take note of the difference.


Product count based on documents  >  Physical count
Possible scenario
1. You have the delivery receipts but the product is still in transit.
2.  There is a possibility that a staff stole an item.


Product count based on documents =  Physical count
Possible scenario
1. You have an accurate inventory.
2. Less likely but possible that count based on documents have the same error as the physical count.
3.  You made an error in physical count so the differences will not be reflected


Product count based on documents <  Physical count
Possible scenario
1. You are not issued delivery receipt on the received goods.
2. The good is still pending for delivery to customer.

Discuss the numbers with your operations people and record keeping department to interpret better the possible reason of the differences.

How long can your business survive in a monthly zero sale scenario? Part 1

How long can your business survive in a monthly zero sale scenario? Part 1

Working Capital analysis  

Sales 100             Sale   0

Expenses  50       Expenses  50

Net income   50    Net Loss -50

Working capital ideally should be cash that is readily available that you earned from previous months of operation.

Ex. You have 500 cash that is not allocated to any purpose. 

500 / 50 monthly expenses without any cash inflow in your business   = you can still operate in 10 months.

How to Check if you are Missing a lot of your inventory ( Internal Audit) Part 2