Compliance and Corrective Action Plans can be an opportunity for enhance your business - if handled the right way:
Looking at your business from an enterprise risk point of view can help you find all kinds of things you haven't thought of yet:
Whether for-profit or not-for-profit, you have to keep an eye on your viability ratio which compares expendable net assets to long-term debt. It shows your availability of cash ability over time: you should have a plan to keeping your cash going to
meet your financial obligations.
When you apply for a bank loan, the banker will look at your Quick Ratio which compares quick assets, your current assets less inventory and prepaid expenses, to current liabilities. It helps to measure your quick ratio in real time as payments come in and go out, to let you know where you spending goes.
Both ratios vary based on your business plan. You may want to be debt heavy or asset heavy depending on the kind of business you operate - you just have to plan it and keep an eye on the balance.
What happens when a government agency knocks at your door for a compliance audit? You'll see whether your documentation has been "live" or shelved. Audit findings can help you re-energizing your workforce to meet obligations and increase customer service quality if you use your Corrective Action Plan with a focus on the client, not the organization. Our consultants have conducted hundreds of Corrective Action Plans and will be able to help you achieve that focus.
This will help you with program efficiency and compare total program expenses to total expenses. Watch that ratio improve as you execute your Corrective Action Plan. It should be one measure for success. Having this information can help you demonstrate to potential funders how efficient your organization is in fulfilling its mission.