How to best benefit from the accounting department in your restaurant?

Besides the usual suspects of accounting, paying the bills, and doing taxes, accounting departments can do much more. Today, I am going to cover the importance of financial controls. In another article, I will touch base on the importance of financial analysis and taking action based on financial analysis.

Financial controls help to ensure accuracy and integrity in financial reporting. They also help to reduce the risk of fraud and financial mismanagement. Financial controls are implemented through policies and procedures, internal audits, and other mechanisms. Financial controls should be tailored to fit the organization's specific needs and objectives. They should be regularly reviewed and updated as needed to maintain effectiveness.

By implementing proper financial controls, organizations can ensure that their finances are in order and that their financial reporting is accurate and reliable.

To support operations and maximize shareholder value, the CEO and the Board are responsible for the following:

a)???hiring the proper management to ensure that the company builds the necessary structures,

b)???the Management designs adequate procedures and trains a workforce to perform these procedures.

c)???assessing the risks of the company's operations and taking the appropriate actions to mitigate these risks

d)???developing and implementing financial strategies to ensure the company's long-term success and profitability

e)???monitoring the company's financial performance and making adjustments as needed to maximize shareholder value

g) ensuring that the company meets its legal and regulatory obligations

Like James Bond constantly scans his surroundings for enemies, it is my Pavlovian conditioning that I perform constant risk assessments and scenario analyses. This is what ten years in public accounting, followed by bronco rides at start-ups, did for me.

If your company doesn’t have the best financial controls, you are not alone. Many years ago, I was auditing an $8 Billion Fortune 500 company, and I realized the AP clerk could effectively change the payment information and wire herself $250 million a month. Neither she nor anyone else knew about this until I asked a few probing questions.

In one of the largest manufacturers in the world, I saw a fraud scheme so elaborate that Bernie Madoff and Enron folks would be proud.

Now that I talked about sensational and rare stuff, let’s talk about what usually happens.

Imagine a credit card dispute going unanswered. The credit card company will accept the dispute and withdraw funds from your account. You worked hard to sell but lost the revenue because of the failure to perform this task. Now multiply this by 100, and it is just the beginning.

To help restaurant companies ramp up their finance operations, Accross Restaurant Consulting Services has a two-part solution.

Accross performs a diagnosis study to identify the risks, review internal controls and financial reporting structures. We report the findings to the Management and explain the likelihood and magnitude of the identified risks and weaknesses and other areas of improvement.

In the second phase, we implement the areas of improvement to elevate the Company’s finance structures and finally train the Company staff for long-lasting success. ?

Are you ready? You can reach out for the next steps.