Financial Accountability: Would you survive a financial audit?

Financial Fraud: Would you survive a financial audit?
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By Jimmy Muhinda

Media regularly shares stories about employees who are involved in financial impropriety. The majority of these are prosecuted and convicted for causing financial loss.

Others survive the goals because of technical issues rather than lack of evidence. It should be noted ,however, that not all who are accused and/or convicted personally diverted such sums of money for their own use.

You do not need to have embezzled money to fall into financial trouble. Everyone should account for any money that comes or goes through their hands. The trail of money in and out of business must always be clear.

  1. How much was it?
  2. What was it used for?
  3. How much of it was actually used?
  4. Where is the balance?
You do not need to have embezzled money to fall into financial trouble.

Not all money given to you must be spent. It is vital that receipts and other source documents are included when accounting for any money. Those responsible must cross check the authenticity of any presented receipts.

They must also ensure that prices are not exaggerated. Believing accountability simply because receipts are presented is irresponsible. A lot of false accounting goes on.

Numerous suppliers give out blank receipts and source documents to customers who then go ahead and fill in amounts of their choice. Lack of receipts should not stop you from finding out whether presented accountability are right.

Because we cannot get receipts for every expense, we must find ways of limiting misuse of funds. Any prices used in the accountability must be similar to prevailing market rates. We have all fallen short in financial discipline at one time.

We have given into prevailing circumstances and pressures to use money we should not have. We have falsely believed that we shall easily refund this money only to realise that it is not as easy. We have anticipated circumstances favourable for us to meet our financial obligations only to meet tougher times ahead.

Using money that does not belong to you must be avoided at any cost. You won’t feel complete till you refund that money. Financial impropriety dents your confidence. Financial impropriety erodes trust people had in you. Put your financial matters in order.

The writer is the author of Small Business is Big Business

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