LP Gas, August 2018

How does human resources fit into the business of operations 44 LPGas August 2018 LPGasmagazine com ISTOCK COM ARTISTEER M any small businesses start out as solo operations but successful entrepreneurs must soon hire employees to meet demand as their companies grow HR stands for human resources a department within a company that deals with employee related issues Its common in the propane industry to have one or two people who handle HR duties HR operations include but are not limited to administrative services payroll recruitment job analysis employee relationship management compliance terminations and onboarding Most HR practices are in place to support management and staff in their dayto day business operations and activities Small businesses that do not need full fledged HR operations often prefer to outsource the necessary services Large companies in which the scope of HR services is vast support in house HR operations I have sat in the seat of an HR department I have worked in big businesses with decentralized HR teams I have consulted to big and small companies I could tell you a lot of stories but today Im going to focus on just one STRICT FIDUCIARY PRACTICES I want to point out the importance of strict fiduciary practices to ensure that proper controls are in place to protect your companys profit centers I was consulting with a big brokerage firm in Denver and was involved in its business on a full time contract basis I worked with the leadership team to complete a SWOT analysis on its independent business segments SWOT refers to strengths weaknesses opportunities and threats When the project was completed there was a small team that reviewed the data It didnt take us long to figure out that accounting was not as tight and secure as it should have been The person in charge of accounting had been with the firm for almost 20 years The CEO trusted her capabilities and his relationship with her We hired an external accounting firm to come in and complete an exhaustive audit It came as no surprise that she had been stealing from the firm for years It was later discovered that she had developed a gambling addiction that the company had been paying for all along How would you feel if this happened in your company Do you have the controls in place to ensure your money is secure As you read this I know you are asking yourself Could this happen to my business You cant imagine that your accountant who has been with you since you started the business might be someone you cant trust I challenge you to print out the SWOT form from my July column and complete the analysis on the areas of opportunity in your company Here are just a few control points to keep in mind Are all expenses approved in advance by those authorized to do so Is all cash thats received counted and verified by two employees Is check signing authority vested in people at the appropriate high levels in the company who do not have any accounting responsibility Do the check signers review supporting documentation of expenses and approvals at the time of signing checks Are bank statements and canceled checks received and reviewed by a person independent of the accounting function Is a chart of accounts used If so does the chart of accounts provide for tracking expenses by activity You get it Take the time to review your processes and tighten up where needed As we all know money doesnt grow on trees LPG HRsolutions QUOTE OF THE MONTH Ask Cathy Wallace of San Isabel Services Propane in Pueblo West Colorado about employee related issues Contact her at cathy@ bizoverdrive com or 720 252 1110 Strict fiduciary practices ensure that proper controls are in place to protect your companys profit centers AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST BENJAMIN FRANKLIN Founding Father inventor polymath Philadelphian