123s of Business Assessments
We are all familiar with New Year’s resolutions. At the end of each year, we conduct a self-assessment and set goals for ourselves heading into the new year. Slowly (or in some cases the first day) we drift away from those goals only to rinse and repeat at the end of the year. Similarly, businesses can find themselves drifting away throughout the course of the year from the goals set or compliance standards required. In preparing for a new year, businesses should also conduct a self-assessment in the form of a Business Assessment (or Practice Assessment for medical providers).
The starting point of any Business Assessment is gathering all documentation and information to be analyzed. In setting the scope, you should start with documentation from the following four areas: (1) corporate documents; (2) financials; (3) staffing; and (4) policies and procedures. Once gathered you can begin the assessment by identifying whether anything is missing or conflicts with how things are or believed to be with your business. The hope, though, is you confirm everything remains aligned.
It is also important to remember that a Business Assessment should include analysis by each member of your advisory team. In addition to legal counsel, you should include your CPA, and tax and financial advisors for their respective perspectives. Once again, all aspects of your business should be aligned to prevent any issues.
Finally, like the New Year’s resolutions, a Business Assessment should be an annual tradition. Compliance is not static and industries, especially health care, are constantly changing and you need to ensure your business doesn’t fall out of compliance. Unlike the New Year’s resolutions, hopefully your compliance can last longer than a day.
For more information and guidance on business assessments, please schedule a consult at firstname.lastname@example.org.