To reduce costs, gain access to specialized skills and resources, and scale operations, organizations can outsource repetitive business tasks. But the outsourcing of a process does not mean the outsourcing of the responsibility to oversee. In the absence of governance, companies can experience multiple issues, such as inconsistent service, data challenges, lack of accountability, or…
In many cases, a business will need to expand and grow, and it will have to decide how to do so and what the long-term monetary implications of that choice will be. The choice of funding should support the company’s overall goals, whether it’s going to expand into new markets, invest in new technology, or…
Financial statements can be used by business owners, investors, lenders, regulators, and other stakeholders to help them understand an organization’s finances. Statutory audits are necessary under relevant legislation for eligible entities but are not simply a requirement of legislation. A good audit, if performed, can help to build confidence in the financial statements by assessing…
As businesses grow, back-office functions can become increasingly complex. There are a number of activities that take time, people and processes to complete, including accounting, payroll, data management, customer support, procurement, and administrative tasks. When these functions grow faster than internal capability, companies can have increased expenses, flawed processes, and strain on core teams. Business…
ESG reporting should no longer be confined to the general reporting of sustainability initiatives. Increasingly, businesses require organized, verifiable and consistent information to meet regulatory requirements and the expectations of stakeholders. BRSR reporting is essentially about aggregating environmental, social and governance data across various functions and making it a meaningful reporting system for companies subject…
The company may appear successful according to its reports, yet, at the same time, be at risk for reasons not obvious from its financial statements. The following factors, among others, influence financial accuracy and operational efficiency over time: unaccounted accounts, approvals of poor quality, strange transactions and lack of documentation. A formal financial audit may…
For many businesses, especially manufacturing, retail, distribution, and trading companies, inventory is a large part of their financial reports. The accuracy of the inventory amounts relies not only on the actual amount of stock on hand, but also on the period in which inventories are purchased, sold, received and dispatched. These transactions can result in…
Companies engaged in international business, international investments, international services, or international remittances must conduct their business in multiple currencies. This makes up part of the global operation but requires additional paperwork and compliance with regulations. The absence of such paperwork may create problems in determining the motive, value, and legitimacy of the transaction during any…
Bank reconciliation is a significant accounting control that enables businesses to compare cash records with the bank transactions reported. If it is done on a regular basis, it can help to detect discrepancies, provide cash visibility, and help to create more accurate financial statements. Errors, however, in the reconciliation process may not be detected and…
A Build-Operate Transfer can help develop a new capability, operating unit, or delivery centre and prepare it for long-term ownership. But the effectiveness of the BOT operation does not depend solely on the quality of the operation itself and how it is managed. The ending of the encounter also must be carefully planned out. The…
