The finances of any organization are extremely important, as they will be necessary to fund the current operations and future growth. At the same time, they are always vulnerable due to theft and fraud. Consequently, it is essential that all organizations find ways to better secure their finances. Several processes and tips could be used to protect any company’s finances and avoid fraud.
The first thing that any company needs to do when it comes to securing their finances is to have good accounting systems and processes in place. An accounting system is any system that is used to track and manage a company’s income, expenses, and other monetary activities. Many SaaS companies offer high-quality accounting software that can be implemented into any business model.
In doing so, you will have the ability to get real-time information and updates about your company’s financial position. Having a system in place will also give you the ability to reconcile financial records to your bank accounts daily. If there suddenly appears to be an issue with the reconciliation, it could be a sign of fraud that needs to be addressed.
Your accounting systems and processes should also be able to provide you with footprints, or records of who changed what accounting records, that can lease a permanent trace of all activity. This way, if something fraudulent or unethical is done, you will be able to have a permanent record of it without having the item covered up. Identifying fraud as soon as possible could help you to recoup as much money as possible.
Fraud Detection Services
While it is good to have your processes in place for managing finances and identifying fraud, you should also consider upgrading your systems and investing in fraud detection systems. These systems are designed to help a company detect and protect against financial fraud. When you enhance fraud detection with Confluent, you can receive a variety of additional services that will help you to identify fraud before it gets too significant. These services will help you to monitor your processes and bank accounts to ensure that your finances are protected.
The most important asset that any company can have is a quality set of trusted employees. This statement is especially true when it comes to finding people that manage your money. It would help if you looked to hire and train people that are skilled and knowledgeable about finances and accounting. At the same time, you should have a full background check process that will identify whether or not a new applicant has been in trouble with the law due to financial crimes to help you avoid hiring someone that has a history of violating laws.
While it is crucial that you trust your staff, you also need to make sure that you have more than one person checking these records. Ideally, you should have at least two to three people reviewing financial statements and bank records. Further, these people should not work directly together. If these people do identify concerns, they should also be vigilant about reporting the issue. They can then raise the issue to a higher level if their concerns do not seem to be heard.
Red flag warnings and training
When you are trying to secure the finances for your company, another significant thing that you need to do is train your entire company. While most financial work will be handled by your accounting and finance teams, noticing fraud and the risk of money loss is a job for all people in your organization. To ensure that your team can identify these threats, you should have regular training sessions that will teach people to notice red flags. Training will help you to detect fraud, money laundering, and a variety of other risks and concerns.
Ultimately, keeping your company’s finances in good working order is very important. If you are not able to do this, you will run the risk of losing money and having a damaged reputation. Fortunately, there are a wide variety of things that you can do to better secure the finances for your company.
About the Author
Kevin Gardner graduated with a BS in Finance and an MBA from UCLA. He works as a business consultant for InnovateBTS where he helps companies and startups improve financial structures and overall performance. He shares his knowledge and expertise not only with his clients but with his fellow bloggers and readers.