I am one of the people who when on the motorway is often to be found always trying to see the name of the wonderful green and orange vehicles that are driven by the Eddie Stobart fleet. Being horrified to see that they have avoided going under, the article I have just read – link below – was scary and yet again showed the challenges of accounting errors.
More and more I am trying my hardest to get people to see that doing your figures yourself or trusting to non-qualified people is a huge business risk. Accounting errors are all too easy if someone does not control this. At the level of companies I work with it is easier to see anomalies quickly but for those larger organisations unpicking the underneath information is really the only option and finding the errors at source. If you get the bottom right, the top works but trying getting the top to see that when all too often I have come across the attitude of “the office staff do that” … do they and do they care to know or understand that when you are falling over check the bottom ……
Perhaps I make this seem far too simplistic or, perhaps, I am right, but every time I go into an organisation all too often I have seen the staff value fall the lower down the “pecking order” they are placed yet these people put in the most crucial information and if they get it wrong for lack of training where does that leave the top information people who depend on the information to make business decisions.
Get the bottom people properly trained and certified and ensure that they maintain their professional knowledge, or, get a qualified person in to put financial controls firmly in place. As an organisation grows, its growth will only be as good as its solid information base – do your staff really contribute or do they just input.
To put this into a very specific example … whilst interviewing recently for a new position in my business I found that knowledge of qualified people was only as current as their last exam … 20 years ago. When asking one applicant about VAT schemes, they had no idea that there was more than one, so if they are not thinking outside the box in their current work then what value do they add to their current organisation – input roles are massively devalued sometimes by the people who do them, despite saying that they are qualified. Qualifications do not mean you, as a company, are safe.
If you think that your company may have a gap in your accounts … ask me for a chat. You will feel my passion, knowledge and caring about making information work for your business as well as for your accountant.