Managing Business Relationships
Manage Risk with a Professional Approach
The key to managing risk with these stakeholders in your business is the adoption of a professional and business like approach.
This starts with the appropriate documentation of the relationship between stakeholders and your business. Documentation removes misunderstanding of what was said or agreed.
Your sales documentation should anticipate the customer not paying and have provisions included which are designed to minimise your loss. PKF can work with your legal advisers to structure appropriate clauses into your standard sales documents.
Your contracts with suppliers should correctly specify what is being ordered, when payment is due, who is to pay it and who is guaranteeing the payment. Very significant clauses giving personal guarantees and security are commonly included in the fine print of documentation opening trade accounts. PKF can work with you and your legal advisers to review documentation prepared by others to limit your exposure.
All businesses are reliant on the people who work in them and good employee relations are a characteristic of most successful businesses. It is important to understand the laws which apply to your employees and the way they act in your business. There are awards as well as other laws which govern how they are to be engaged, how they are to be paid and the conditions in which they operate. A good business owner knows their obligations.
PKF can work with you and your legal advisers reduce the risk that you are not compliant with the legal requirements and also work with you to develop and document appropriate employee policies and employment agreements for your business.
Businesses also suffer losses as a result of the people working in the business not being sufficiently careful with the business’ sales proceeds or items for sale. PKF can work with you to reduce these risks by reviewing or implementing cash and inventory management systems.