The most common yet expensive fraud that organizations face is payroll fraud. Statistics suggests that it can remain undetected for years, costing a company hundreds of thousands of dollars. Payroll fraud is defined as any scheme in which employees make false claims for compensation to receive a payment from the employer. Organizations also face payroll fraud where the payroll managers or bookkeepers in the accounting department manipulate the financial statements. Payroll fraud has several forms. The most common one involves workers that are paid on hourly basis, fraudulently boosting the amount they are entitled to, by altering the number of hours they have worked for. Commission workers in manufacturing get paid on the basis of the number of units they produce. Such workers sometimes manipulate records for the number of sales or units produced. Another common form includes false claims for expenses such as taking personal trips and labelling them as business trips.
Financial crises could be severely damaging for your business. A financial crisis can arise in the most unexpected times, even if the businesses have taken enough safety measures to avoid it. There are several factors that contribute to financial crisis in an organization like broad market factors which include overpriced assets and excessive debt built up in a financial system, or financial stress in a specific industry or company due to various reasons. Also, the highly competitive and rapidly evolving market these days gives way to unexpected loopholes in the implementation of financial and corporate strategies, leading to financial setbacks. However, once your company is in a financial crisis you need to use the right strategies to deal with it or it can bring downfall to your business in no time.
Majority of employees have admitted that finance is one of the biggest stressors in their lives. For some of them this stress is overwhelming while others experience deterioration in their mental and physical health in the form of reduced sleep, irritability and many other issues. And it doesn’t need mentioning that stress majorly impacts an individual’s performance and efficiency at work. Financial concerns aren’t always about how much money a person is earning. It could also be about retirement, budgeting, managing loans etc. It’s important that an individual achieves confidence in such money matters and this is what we call financial wellness. Employees with monetary worries not only exhibit diminished performance at work but also damage the business. Being an employer, you must be aware if your employees are under any kind of financial strain and should be proactive to maintain their financial wellness.
The world of technology is evolving at a fast pace and over the last decade many new technologies have emerged and strengthened their position in the cryptocurrency market. However, along with new and innovative technologies, the industries are also encountering new challenges before they can reap the benefits which these technologies promise. One of the best examples of this is cryptocurrency which promises to bring innovation to diverse fields. Cryptocurrencies such as Ethereum and Bitcoin have, in a short span of time, gained much popularity and people are trying to explore the technologies more. The influx of people into this market is so high that the cryptocurrency exchanges periodically disable the account creation feature. The average trading volume of the market, on daily basis, has been estimated to be trillions of dollars.
A number of business owners make the terrible mistake of thinking that petty cash is insignificant and doesn’t need much of management. Petty cash is the small amount of cash that is spent on small company expenses like daily coffee runs, staff birthday celebrations, postage costs etc. However, just because petty cash doesn’t constitute a huge amount of money, doesn’t mean that it’s not important to track and manage it. All the little company expenses add up to make a pretty good amount. And, when properly managed, petty cash helps you keep an accurate record of all the finances of your company.
Regulatory Technology, more commonly known as RegTech, is defined as the use of new technologies for helping financial institutions effectively meet regulatory requirements of reporting, monitoring, compliance and risk management. RegTechs is often confused with FinTech but the latter is defined as using technology for delivering financial solutions. Unlike FinTech, RegTechs focuses more on rethinking the way finance and regulation work. RegTechs provides cost effective solutions to financial firms for meeting regulatory requirements through automation and digitization.
Small businesses face a number of challenges among which finance management definitely tops the list. Financial decisions must be exercised with utmost caution, right from the beginning, as small businesses operate on limited financial resources. Establishing a successful business requires a lot more than just a good business idea. For generating profits and staying credible in the industry, entrepreneurs need to excel in finance management. If your small business is struggling with managing the finance, you just need to rehash your strategies and modify your operations a little to improve your finances.
One of the prime factors that drive a business towards success is great customer service.No matter how great your product is or how talented employees you have in your organization, if your customer service isn’t good, your business won’t thrive. It isn’t very easy to provide awesome customer services and it requires skills and well thought strategies. Research suggests that if people receive good customer service they tell 2 or 3 people but if it’s bad they tell 10 to 12 people. In this scenario where recommendations and word of mouth hold such great value, it’s extremely important to be consistent in delivering great customer services. Even if you have been recognized as an excellent organization in terms of customer services, you need to constantly upgrade and refresh your skills to keep your customers consistently satisfied. Your customer service team is the face of your company and their skills determine the experience of your customers.
Bank audit refers to the procedures for evaluating the services and processes in banks and other financial institutions. All financial firms need to undergo this routine procedure to ensure that they are complying with the industry-specific as well as jurisdictional laws and regulations. Bank audits are conducted by specialist accountants known as bank auditors that focus on the completeness, accuracy and legitimacy of the financial activities. Although many banks and financial institutions find the audits a dreaded and strenuous experience, periodic audits are essential to ensure that the institute is fully in compliance with the regulations and is operating with high efficiency. Considering the significance of such audits, it’s important for an auditor to have a checklist for bank audits and use it as a tool to test and evaluate the processes. It also helps the auditor to ensure compliance with the laws and regulations of U.S. Securities and Exchange Commission (SEC) and International Financial Reporting Standards (IFRS).
Return on Investment (ROI) is defined as the ratio of net profit and financial investment of a business. It is the financial return a company receives from spending money on its business. For business owners, increasing ROI depends on how well they manage the company finances and business assets. In small businesses covering expenses requires well thought strategies to ensure that “less is more.” Often employees need to take care of multiple roles and work with limited resources to minimize investments and increase profits. However, be it small or big, for every business, it’s crucial that the ROI keeps on increasing. Although, business always comes with multiple risks, there are a few strategies that can help in increasing ROI of your business: