Why Forensic Bookkeeping is Essential in the Manufacturing Sector
Corporations request a forensic accountant’s services to snuff out fraud, embezzlement, and other financial crimes related to business operations. These professional bookkeepers combine accounting and auditing skills with investigative procedures to analyze a business. The results of their analysis are admissible in legal and non-legal spheres.
Here’s why our forensic bookkeeping company believes these services are needed in the manufacturing industry.
Monitor and Report Cash Flow and Transactions
You may not have an accounting department if you’re a small and mid-sized enterprise (SME). Even if you do, it may not have sufficient staff to keep track of transactions and cash inflows.
The partial or complete lack of oversight may result in fraud, embezzlement, or loss borne out of negligence. However, you can avoid or address these costly consequences before they get out of hand by hiring a forensic bookkeeper who would not only help you figure out the situation, assess its gravity, and take countermeasures to mitigate their present and future risk.
Identify Weaknesses in Your Manufacturing System
Every manufacturing company has vulnerabilities. While you can’t completely remove these weaknesses, you could identify and acknowledge their presence and seek to mitigate their risk as much as possible. This is where forensic bookkeeping comes in.
Our forensic accountants can perform internal control evaluations to form a fair opinion on your current financial situation, particularly focusing on where your infrastructure is at its weakest. They could then suggest pathways to decrease, diffuse, or eliminate these drawbacks, thus strengthening your manufacturing chain against theft and fraud.
Isolate Gaps in the Cash Control System
Nowadays, everything has a paper trail. Whether or not your accounting department reported checks, wire transfers, card transactions, and receipts, you can count on a forensic analyst to go where you can’t and compile a record of these financial documents.
By analyzing this paper trail, our professional can help you identify the gaps in your cash control system and make recommendations as to how to keep following the cash entering and exiting your manufacturing company.
Compile a List of Suspects
Seeing a forensic accountant as a detective isn’t too unrealistic. When they’re working, they’re not only trying to detect and prevent fraud and embezzlement but also looking for the most likely suspect to have committed the financial crime.
They have the skillset to look beyond the smokescreen, misdirection, and whatnot to the individual(s) pulling the strings.
Suppose you suspect someone at your manufacturing company of a financial misdemeanor. In that case, our forensic bookkeeping firm can help you assess your current financial situation, identify the source of the crime, and shortlist the most likely suspects.
Start a free online trial at our professional bookkeeping company for a test run before subscribing to our services.