WHY ORGANIZATION NEEDS TO PLAN THEIR SYSTEMS. (Payment, Receipt, Sales, Purchase, Payroll Systems).

Planning, for an organization is the most important task in hand after the investment capital and understanding the nature of the business. Planning is crucial in order to understand whether the business is going on the right direction and also to ensure if all employees are directed towards the goals. Payments, receipts, sales, purchases and payroll are the most important systems that an organization needs to keep track of , since they are more or less the heart of an organization. Planning is everything to do with budgeting and forecasting, this needs to be most accurate to enjoy positive realistic results.

The following explains as to why you need to plan your systems right to ensure you and your organization is safe in years to come.

  • Managing your receipts and payments/ Cash management

This is foremost important for growing and new businesses since if your organization leads to facing a cash flow issue, the margin of security during unanticipated expenditure is very low. If such a situation occurs and if your organization is unable to pay, this gives a bad reputation and will cause employee turnover creating insolvency and a bankruptcy situation.

  • Managing sales and purchases

Sales is the major mode of income for your organization, making sure your sales forecast is line with the realistic results aids in planning your purchases right. The importance to success is implementing the correct marketing and promotional strategies, to take your product or service to a level that it would be the benchmark for your competitors. Challenging task, isn’t it? However if successful, you could enjoy sales, reputation and retained employees.

  • Managing Payroll

Having a proper payroll system or an outsourced payroll service is important to ensure your employees receive their basic salary and their commissions if any, on time. Planning your payroll needs to be commenced from the beginning of a particular month, this needs to aligned with your sales and when you could receive payments from your clients.