An analogy can be drawn between an operations review and a medical checkup. A medical checkup involves various tests and measurements of one’s vital signs. Likewise an operations review involves various tests and measurements of a business’s vital signs which include internal controls, efficiencies and various metrics specific to your industry.
The first step in our review is to interview accounting personnel to gain an understanding of their job functions. This includes a system walkthrough whereby we gain an understanding of document flow, internal controls, revenue capture, purchasing, inventory, payroll and all of the major cycles within an entity.
We can design the scope of the review to be general or comprehensive in nature. For example in a comprehensive review, we can test a sample of disbursements to determine if proper approval and invoice processing functions are documented.
At the conclusion of the interviews and walkthrough we are in a position to make recommendations for improvements to internal controls and efficiency. Even in an organization with limited personnel, accounting functions can be established that enhance internal controls and mitigate the possibility of fraud.
The scope of the operations review can also include recommendations for software and include specific objectives such as establishing a dashboard of industry specific metrics which will alert you to trends requiring management attention.
In summary, we can tailor an operations review to meet the unique needs of your business. If you would like more information on this service, please call one of our management consultants at (270)926-4540.