Working in a cash based environment creates a number of risks for your business, but there are some simple steps you can take to mitigate the potential risks:

1. Conduct a risk assessment
Are you collecting all the cash you are entitled to? If you answered yes, how certain are you of that? You need to know where risk exists before you can eliminate it. Identify your needs and assess the points where risk may be involved. A recent audit we conducted for a client indicated an internal control issue costing the client up to $2,000 per week in lost revenue.

2. Create a process
Have a clearly defined process. Create policies and procedures addressing the issues you’ve identified in the risk assessment. Set out clearly for each step in the process, what the risk is and how to eliminate it.

3. Set the expectation
Education and communication is the key. Set clear expectations from the start. Train staff in the policy and procedure and follow up with them. The organisation must live the policy and make it “the way we do things.” A person who fits and lives the culture is less likely to engage in fraudulent activity.

4. Embrace technology
A relevant and appropriate point of sale and booking system will greatly assist in recording cash based transactions and the cash reconciliation process. Using a system which integrates across different facets of the business achieves this goal. If the appropriate technology is cost prohibitive, use a manual system but create the process and set expectations.

5. Review
Regularly review the systems in place. Updated technology or new team members may mean that the policy is outdated and may need to be reviewed. Test the processes with an internal audit. Update your policy as appropriate.

If you are unsure how to conduct a risk assessment for your business, contact us today and we’ll help get you started.

Identification and understanding key drivers within your business is the key to making timely and more informed business decisions.  Below is a short description of five key drivers within golf course reporting:

  1. Yield. In golf there are many different price points across many different areas of the business. Understanding what each of these points is worth to you on a per unit basis gives you a greater understanding of the value you are offering your customers.  What is the per unit value of each commodity you offer worth to your business?
  2. Utilisation.  Utilisation is generally thought of in usage of tee times. However, it can be used across many other areas such as your cart usage, driving range, or pro shop sales. Knowing where utilisation is lacking provides opportunities to engage in more ways with your customers.  When and how is your facility being used?
  3. Secondary spend.  Your primary business is selling tee times, everything else is secondary spend. Knowing where your secondary spend is coming from and where it can be improved is vital in adding value to the bottom line of the business.  How much are your customers spending within other areas of your business?
  4. Wages.  Labour is generally the largest expense a business can incur. Understanding where your labour is deployed and the value provided to the revenue coming through the till lets you achieve that balance between too much and not enough.  Do you have a system in place that allows you to track your labour movement and make timely adjustments?
  5. Customer experience.  Non-financial indicators such as customer satisfaction allow you to get a feel for how customers interact with your business. Understanding the customer experience can be an early indicator of opportunities or threats that may exist within your business.  Are you providing the ultimate experience through all customer touchpoints within your business?