It’s frustrating to know that the numbers don’t match when you check the financial documents in your company. Unfortunately, in many instances, it’s somewhat late before you realise there are problems. To avoid them from happening again, you need to understand why they exist in the first place.
There’s no transparency and accountability
The people you gave the responsibility to for dealing with finances in your business don't necessarily care about the trust you gave them. Since you don't have the means of knowing how they used the company's money, they could end up abusing the privilege. Worse, if other people managed to avoid penalties in the past, they might think that it's okay to be irresponsible in handling the company's financial resources. Sometimes, companies have money issues, not because of a lack of profit, but the improper use of money.
You don't have a transparent accounting process
Your company doesn’t have people who deal with the accounting of all financial transactions. For every penny that the company releases to use for operations, there needs to be someone accounting for it all. You can hire a full-time accountant to do it. If the responsibility is too big, and you can’t afford to hire more people for the job, you can consider outsourcing this service. You can check out accountants in central London if you want quality accounting services. Once everything is on record, it’s difficult for discrepancies to take place.
You have a relaxed policy
When you don't care about how your employees use company's resources, and you don't even confront those you suspect of using the funds improperly, it makes everyone think that they can get away with terrible behaviour. It doesn't matter if you're friends with everyone at work. You need to ensure accountability; otherwise, the company will suffer.
You keep changing employees
Sometimes, errors occur because of the high turnover rate in your company. When the person in charge changes all the time, it's possible that there's no accurate transition that takes place. As a result, some of them turned over documents with discrepancies. When you notice such issues, it's too late because the employee who caused the problem has already left the company.
You can't let these issues slide. If you wish to have a successful business, you can't rely on external factors alone. Even if the demand is high and the products are of top quality, you won't enjoy the profits coming in if your employees don't use resources wisely. If these resources end up in people's pockets and you don't even care, it could be a disaster.
Find accountants you can trust to deal with all these matters and change your policies. You need to hold people accountable for their irresponsible behaviour and make sure that those who committed fraud and other such activities will suffer the harshest penalties of the law. Of course, you need to carry out a thorough investigation, but people have to get punished for how they used your company’s money.
Member since: 26th November 2018
Having enriching experience in the world of digital marketing, I have created a niche for myself in the industry. The primary focus lies in writing, blogs, articles and different stuff that help businesses...