As a business owner, you have invested a considerable amount of time, money, and energy into creating and managing a successful enterprise. Why jeopardize everything you worked so hard to build by dropping the ball when it comes to your financial recordkeeping? 

Having a comprehensive framework of internal accounting controls in place is critical to the financial health of your company. Such controls are there to safeguard both your assets and your internal stakeholders, and they can help you avoid the following:

  • Fraudulent activity
  • Inaccurate reporting 
  • Inefficient operations
  • Misuse/mismanagement of funds
  • Improper or missing documentation
  • Legal issues due to non-compliance with state and federal regulations

The problem? Many companies, especially SMBs, lack the time and resources to develop and implement proper accounting controls. But without that system of checks and balances in place to ensure accurate and reliable accounting records, your business may be at risk.

Small and mid-sized business accounting controls are even more important because lost assets are often harder to replace when companies have fewer resources. This is especially true if accounting errors go undetected for a significant amount of time. 

 

Forensic accounting reveals weaknesses in internal accounting controls. 

 

Recently, our firm worked with a client who reached out to us looking for a consultant after they noticed some discrepancies in their QuickBooks accounting software. This is typically how the process begins—with the discovery of a seemingly small problem or a feeling that something may be off. 

We started by conducting a ratio analysis inside of QuickBooks to get an overview of the client’s financial health and performance. Once we compiled the information, we measured it against a large data population to determine whether or not things looked in line. We also conducted a sales tax reconciliation to ensure the client’s accounting records were correct. 

Overall, a thorough audit of their tax records and fiscal documents revealed that the client had not been properly accounting their financial data for the past few years, and we were able to identify those areas in need of modification and guide them toward the next steps. 

 

Safeguard the financial health of your business.

 

Internal accounting controls are the policies, procedures (both manual and automated), and best practices that ensure your financial reporting is accurate and that your business is protected against accounting errors and fraud. Though it is important to implement them as early as possible, no time is too late to get your ducks in a row. 

Whether yours is a veteran business or still in the early stages, partnering with a certified professional accountant can offer a broad range of essential services, from strategic business and tax planning to litigation consulting and business valuation. 

As your trusted advisors, the accounting professionals at Mangold Anker Phillips can help you identify and manage potential risks to safeguard your financial future and keep your business running smoothly.

Contact us today to find out more.