Business expense fraud is an age-old problem at companies of all sizes. However, with the recent shift toward virtual work the opportunity for expense fraud has multiplied.
Even “good” employees are capable of committing fraud. In fact, a study done in the UK revealed that 74% of employees have committed some form of dishonesty in the workplace. The reported top reasons for dishonesty include “Little chance of getting caught,” “It’s normal – everyone does it,” “The employer can afford losses,” and “Bosses are dishonest as well.” Simply put, employees can be tempted to take more than they should because unlike stealing a stack of cash from a register, buying a nicer version of the technology you need to work from home when someone else is paying for it feels a little less like theft. The problem is exacerbated when employees perceive their peers and management are doing it as well.
When it comes to expense reimbursement requests, if you can imagine it, management is seeing it right now.
Do Amazon sellers need QuickBooks? Yes!
QuickBooks gives you a look at your company’s overall financial health regardless of where you sell, making it a crucial tool for running a business of any size. Fortunately for Amazon sellers, QuickBooks has an easy integration with Amazon to import order information.
What can QuickBooks Online do for Amazon sellers exactly?
Today’s business climate requires more skills from your accountant than ever before.
In the past, small businesses would typically only employ a bookkeeper to handle their basic finances. As these businesses grew and their financial needs became more sophisticated, they would hire an accountant instead, or retain a CPA to assist with tax matters and assume that was all they needed to succeed. However, transitioning from a bookkeeper to an accountant is only the first step in bringing on the financial personnel that will help fuel your company’s growth.
Successful companies need someone that will not only manage cash flow and provide accurate forecasting and reporting, but also offer sound advice. Having an accountant that can do the job is essential but having an accountant that can act as an advisor can really give you a competitive advantage.
So, how do you know if your accountant is working for you?
Cost cutting is the benefit most often associated with outsourcing. Subsequently, business leaders looking to reduce expenses may jump at the opportunity to move costly functions to third-party vendors without regard to the numerous ways that outsourcing can be advantageous to other areas of the company. However, it is important to recognize that while cost savings may occur, this is not the only benefit of business outsourcing. In fact, cost cutting may not even be the biggest benefit.
Since March, 62% of employed Americans have worked from home, which is more than double the previous figures from earlier in 2020. Furthermore, 59% of these employees want to continue to work remotely, moving forward even after public health restrictions are lifted. This sentiment has led businesses to examine the costs of maintaining a remote workforce closely. They are asking:
2020 has been a year of disruptions and reactions. Companies have reacted to supply chain interruptions, new regulations, shifting market demand, and staffing issues, among other challenges with some faring better than others.
Marcus Wagner explains, “Because of COVID-19, businesses and their accounting departments are going through a cycle of shock (and maybe some denial), survival, learning and adaptation. For those of you who haven’t done so yet, it’s critical to begin the shift into the learning and adaptation phases as quickly as possible so we emerge stronger as a result."
Adapting has been critical thus far and will continue to be as we move into 2021. An adaptation mindset allows your business to respond to current challenges and anticipate future disruptions to generate better financial outcomes. Companies with accounting teams that adapt quickly can minimize revenue loss during a downturn and capitalize on revenue opportunities faster during a recovery period.
Cybersecurity is always vital, but in recent months it has become more critical than ever before. In the wake of the COVID-19 pandemic, hackers and fraudsters have capitalized on the disruption and increased their efforts to steal personal and business data. According to Jeff Bathurst, cybercriminals have used this as an opportunity to prey on companies that were not fully prepared to work in a completely remote environment. The pandemic quickly magnified any cybersecurity weaknesses that businesses had, and immediately after the pandemic hit, there was a 40% increase in cyberattacks. In April alone, criminals stole a staggering 220 million company and personal records.
But pandemic or not, cybersecurity should be a top priority for every company. Understanding where your business is vulnerable and what it can do to stay protected will help you avoid cybersecurity issues.
A guest post from our colleagues at CFO Selections:
When adversity hits, the knee jerk reaction is to swiftly cut spending across the entire organization, but that response is a mistake.
Strategic cost cutting can keep a business going through tough times, but it must be approached with long-term value in mind. Reducing costs should abide by three essential principals:
Evaluate your spending and determine where you can cut costs to weather tough times while still protecting critical functions, minimizing long-term expenses, spending where it could end up costing more not to do so, and looking for opportunities to reduce waste.
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