It”s common wisdom that setting goals makes things happen. I was out meeting with clients this week preparing budgets for next year. Since we work a lot with small business owners the first question is usually “what are your goals
When inquiring with small business owners about Internal Controls the answer is almost always, “we can’t afford the staff to have Internal Controls” or “we are too small to need Internal Controls”.
At the highest level Internal Control is defined as:
Know your costs
In order to cut costs strategically you must first know your costs. You must be able to see what your costs have been over time and hopefully have a plan for the future.
Knowing your costs is sometimes easier
Consider the Big Picture
Let”s examine more closely why looking at the big picture is so important. For starters, the big picture gives you a wider view of your market and your business.
Clearly, good strategies are critical to making good business
Some business owners are headed into a new year knowing they may need to reduce their costs to make their business healthy or to meet their financial goals. This is never and easy task, strategically, legally or emotionally. We thought
Plan Year-End Charitable Gift Giving Planning to make charitable donations before year end? As Thanksgiving and the holidays approach, many people start thinking about making contributions and giving gifts. Americans are known for their charitable giving, plus of course, donations
The five most common fraud schemes for organizations with fewer than 100 employees in the ACFE report were: billing fraud, corruption, check tampering, skimming and expense reimbursement fraud. Corruption schemes deal with crimes such as bribery, illegal gratuities and kickback arrangements. The largest number of perpetrators in the entire study, 41.5 percent, had been with the organization between one and five years, most of them had a college degree and worked in the accounting area.
In some small businesses, the risk of fraud is low or even non-existent. Still, accounting errors can potentially be a big problem. One small mistake in recording a payment from a customer can lead to underpaid sales taxes ultimately resulting in unnecessary penalties and interest charges. Approximately 60 percent of accounting errors result from “simple bookkeeping mistakes or misapplication of easily understood accounting standards," according to recent research by Indiana University.
Many businesses fall victim to fraud because they trust their employees and think that it can’t happen to them. One of the most effective measures a business owner can have in place to protect his or her business is a solid set of company policies and procedures. Employees should be well versed in these policies and know that violations will be not be tolerated.
Reliable information exists, but it’s hard to locate. Many organizations lack a coherent, accessible structure for the data they’ve collected. They’re like libraries with no card catalog and no covers on their books. The rise of social media, new selling channels, and devices such as tablets and smartphones has made it even harder to manage analytic content. Fewer than 44% of employees say they know where to find the information they need for their day-to-day work.