Sustainability of an organization is the situation whereby the organization is not possible to collapse or experience financial breakdown (die).
There are so many factors which contribute to the company to be sustainable, In this article I will Present only 3 factors which I call "Fundamental Secrets for sustainability of the company or any institution"
1. Accounting policy ( Strong financial management)
Financial management is very important in any organization for sustainability; income and expenditures should be well controlled.
In reality if there is no set of clear system in the company on the area of finances the company will not last longer.If you set strict rules for money to be used you will win the game.You must have regulations on how to keep and how to spend money. There are some companies can just make money and not banking at all, they use cash to meet the office expenses, in this way it is quite impossible to control finances in the company.
Example if you want to control company expenses do the following;
A. Banking all the company revenues through bank system,it is the proper way to control expenditures , because there will be process to take first in order for a person to get money from the office.If all the time money is available in the office people/staff will come any time to request for money.
B. Set a clear system of levels of authorization of expenditures in the company.
C. Prepare financial reports, daily, weekly, monthly and yearly as well as bank reconciliation statements and interpret the reports.
D . Don't make payments outside banking system.
2. Procurement and Supply Policy.
The company must set clear regulations on how the process of purchases is conducted for proper organization resources utilization.
3. Human resources Policy;
This is very crucial point .The company must have regulations on how to employ staff, dismiss and how to handle them for higher productivity of the company.
Thank you!
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