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…
Input Tax Credit (ITC) is among the most significant aspects of Goods and Services Tax (GST) regime. It lets businesses with a valid GST registration save on their output tax bill for eligible purchases and business expenses by claiming credit for GST paid on their eligible purchases. However, ITC will have certain conditions, documentation requirements,…
When businesses expand across countries and functions, it may be difficult to handle the finance, human resources, procurement, IT and other support activities. Global Shared Services (GSS) provides a mechanism to centralize and harmonize these services, increase efficiency and enhance service quality. But the question for organizations is how much of their business should be…
Environmental, social and governance (ESG) reporting is gaining traction, and organizations are becoming increasingly aware of the need for accurate, consistent and traceable information as part of their sustainability reporting. ESG data may be collected by different departments, locations, systems and from various external sources, and it may be hard to identify how reported figures…
Inventory management becomes much more complicated when a company has multiple stores, warehouses, branches or distribution centers. The amount of product, sales volume, reorder policies, and customer buying patterns will vary from site to site. Inaccurate and late information can hinder businesses from avoiding stockouts, overstocking, late orders and poor buying decisions. Real-time visibility in…
The financial requirements of different firms and circumstances vary, whether it may be expanding business, purchasing assets or even funding major infrastructural projects. Financing through traditional lending is one of the methods of securing funds for a business but this does not work in all cases when dealing with complex or expensive funding requirements. Structured…
