83. What should be done with the Trade Union to start a good business in bangladesh

83. What should be done with the Trade Union

One: You should make effort so that qualified; educated, honest people are elected as leaders of the trade union organizations.
Two: You should provide all facilities to the Trade Union as per the labor laws of the country.
Three: You should try to keep the trade union leaders under your fold so that they cannot go under any political banner.
Four: You should try to convince and influence the union leaders so that the labors put their efforts to increase production and promote quality of goods and develop the relations with the owners of the company.
Five: You should not treat the labor union organization as your enemy and do not take such step that may force the labor leaders to move against you.
Six: Do not give any scope to the trade union leaders to create any ground for raising demands. Try to resolve the problem before raising any issue.
Seven: One person on behalf of the owners should be assigned to maintain liaison with the trade union leaders. The person must be experienced on the relevant labor laws and the existing situation of the labor union activities of the country. You should monitor the performance of the assigned person whether he is able to guide the labor leaders indirectly and strategically as per the existing laws of the country. Progress of your organization depends on the successful management of labor unions.

 

81.Trade Union, 82. Pre-requisites for a Trade Union to start a good business in bangladesh

81.Trade Union

The objectives of trade unionism are really welfare oriented for both the owner and the labors of the industry. According to International Labor Organization (ILO), the objectives of the trade unions are to increase production and quality of goods, improve relations between owner and labors and to organize movement to realize the actual demands in  a very disciplined manner. Unfortunately, the trade unions in our country do not follow the ILO principles.

82. Pre-requisites for a Trade Union

You should be very careful about the trade unionism. The following points should always be kept in mind:
One: No external bad element should be allowed to organize any trade union inside the industrial area.
Two: You should always be vigilant so that no so-called labor leader/political element can take any move illegally to organize trade union in your factory.
Three: The salaries and allowances, leaves and holidays and other facilities/privileges should be granted as per approved rules of the company so that the labors do not get any chance to raise any complain. It will help your company to minimize any probable strikes or agitation.
Four: Recruitment of labors should not be made only on the basis of the recommendations of your advisor/manager. If you do so, labors from a particular group or coterie may organize themselves to form a trade union.
Five: If you recruit a particular group of labors or employees, they may suddenly leave your organization keeping you in an uncertain condition. So, it is better to recruit people from different areas.
Six: It is observed that the industries that do not have any trade union organization usually do not experience any loss. On the other hand, industries with trade unions in public or private sector have experienced substantial losses. It seems that trade unions are harmful to the industries rather than being a positive force in production process.
Seven: No trade union activities are allowed in the BEPZ areas. It indicates that trade unionism in our country is harmful for the industries. So, we should demand to the government that trade union activities should be banned in the export oriented and production oriented industries. 

80. Labour and Manpower to start a good business in bangladesh

80. Labour and Manpower

Some say manpower is the heart of a business or an  industrial enterprise and some say ‘no’, but machine is the life of a factory. However, general proverb says, for triple M: means machine, man and money, are the three basic elements of business. Without machine no production can take place. Machine cannot be operated without man and nothing can be done without money. So, three elements are equally essential.

Recruitment of manpower depends on the type and size of your business. A small trading and micro industrial unit can be run with a small number of people, while heavy and large-scale industry requires a big number of manpower. The following points should be taken into consideration for recruitment purpose:

One: The original plan for establishment of an industrial unit or trading house should incorporate the size and quality of manpower to be recruited. The concerned expert people should be consulted for the purpose. Inexperienced and excess manpower should not be recruited at all.
Two: Regarding recruitment, your personal experience is much more important than the others. Prior to recruitment, you should personally survey  the manpower requirement and then carefully select the people.
Three: Small number but qualified people are more desirable and worthwhile for more production rather than unskilled large number of people. So, quality should be more preferable than the quantity.
Four: Relatives in large number should not be recruited in your organization. It may cause imbalance situation in the company. All recruitment should follow specific rules and regulations.
Five: The Company needs some trustworthy officers and employees. You would not be free from agony without trustworthy employees in the finance and purchase department. You should carefully select some honest, pious and sincere people of your own choice.
Six: Every department should have one or more experienced person. Some new faces should be posted under the experienced people, so that they may get proper training for future replacement, if necessary.
Seven: The Company should frame service rules, pay scale and other regulations and these are to be published in printed form. It will help you to overcome many problems. These rules are most essential, particularly for public limited and private limited company.
Eight: All labors should not be recruited from one particular area or locality. Recruitment of labor should be made on district quota basis. It will help you to maintain balance in the management and macro economic aspects.

78. Functions of Income Tax Department, 79. Special Attention to Some Issues for Finance Department to start a good business in bangladesh

78. Functions of Income Tax Department

Income Tax division of your office should be treated as a subdivision of Finance Department. Every businessman should conduct his business as per the  existing income tax regulations. The people, particularly the business community is very much concerned with the assessment process of municipality tax, Union Parishad tax and income tax.

If you maintain your accounts in a proper way, you  will face no problems in the income tax department. At present, it is essential to submit the balance sheet in the Joint Stock Company for etting the return. There is a provision for penalty for late submission. So, it is better to submit the balance sheet in time. Through furnishing same balance sheet to the income tax department the Returns of the company should be submitted.

79. Special Attention to Some Issues for Finance Department

One: - Since you are getting tax holiday facilities, you can create a special fund with the tax-free income for future investment. This is very important for your business.
Two: If your firm is a public limited company, you can float share in the marker for mobilization of new fund.
Three: Only one balance sheet should be submitted to different offices. Some people prepare more than one balance sheet with different figures for avoiding difficulties. It is not at all desirable for a good company. It may rather create more new problems.

77.Transparency in Accounting to start a good business in bangladesh

77.Transparency in Accounting

Transparency in accounting process must be ensured as per the company’s income- expenditure rules. If you do not have any specific accounting procedure you may adopt the following principles:

One: Expenditure must be incurred as per monthly, quarterly, Half-yearly & annual budget of the company. Some one should be responsible for approving the requisitions of the expenditure. As soon as the expenditure is incurred, a separate authority should approve the vouchers. In this process, the accounts would be audited twice. It will ensure proper spending of the fund.
Two: Cashier shall prepare the vouchers as per different heads of accounts and make its entry in the cashbook. Accountant in-charge shall put his signature on the vouchers after thorough examination. He shall also sign in the cashbook. Accounts manager/proprietor also will sign the cashbook and examine the ledger book to ensure the effective internal control.
Three: Accounts department shall prepare the records for auditing of the accounts. They will also collect the relevant vouchers. They will prepare journal vouchers and make its entry in to the respective books of Accounts.
Four: Accounts department shall prepare income statement balance sheet at the end of the financial year.
Five: The departmental audit team should do internal audit.
Six: Annual balance sheet should be submitted to the appointed audit firm and after the completion of audit, the same shall be submitted to the Board of Directors. If the Board of Directors approves the balance sheet, then the annual accounts may be considered as the closing of accounts.
Seven: The recommendations of the audit firm should be complied with properly and head of the accounts department shall supervise it.

76. Financial Management to start a good business in bangladesh

76. Financial Management

There is a popular proverb that Money is the source of all evils’. Money is the key to success in business. Without money you cannot think of starting business be it a big firm or a small enterprise. It is very difficult to earn money and similarly its protection as well. Development of business basically depends on the proper use of money. Following are the major functions of financial management:

One: Mobilization of fund.
Two: Preparation of budget.
Three: Cost estimation as per the budget.
Four: Prevention of misuse of fund.
Five: Fund collection for future development.
Six: Preparation of balance sheet etc.
Seven: Variance Analysis.
Eight: Budgetary Control.

You have to maintain accounts of your income and expenditure. If you fail to do so, you may experience a huge gap between the income and the expenditure. So, you would have to maintain the following records/registers:

One: Credit Vouchers. *
Two: Debit Vouchers. **
Three: Journal Vouchers. ***
Four: Cashbook Registers.
Five: A/C Ledger.
Six: Import Register.
Seven: Export Register.
Eight: Credit sale Register.
Nine: Assets & Liabilities Register.
Ten: Bank Account Register.

* Credit Voucher: Specimen at annexure-35
** Debit Voucher: Specimen at annexure- 36
*** Journal Voucher: Specimen at annexure-37
 

74. How to Procure Raw Materials, 75. Knowledge Required For Marketing Officer to start a good business

74. How to Procure Raw Materials
 
You can procure raw materials by expending cash money or through opening L/C. Both the systems are allowable in our country. You have to follow the following produce for the purpose:

One: You have to collect price lists of raw materials at least from three salers, so that you can procure raw materials at a minimum price. In case of a single price list, the price of goods may be much higher. Competition always results in lower price of a particular good.

Two: You should procure raw materials or goods from reputed suppliers and the quality of goods must be ensured. You should emphasize on the quality of goods rather than the cheap price. You have to procure quality goods or raw materials even its price is comparatively higher than the other.
Three: Delivery of goods in time is to be ensured;  otherwise the production of the factory will be interrupted.

75. Knowledge Required For Marketing Officer

A marketing officer should be knowledgeable about the following areas:

One: Cost of Fabrics.
Two: Cost of Accessories.
Three: Cost of Freight.
Four: Cost of C&F, Transport, and Insurance.
Five: Ability to operate Fax & Telex.
Six: Ability to communicate with the buyer in English.
Seven: Administrative Capacity.