Tag: financial business

Financial Advisor Help A Business

Businesses owners are who are found not to be consulting with a professional financial advisor also didn’t have any plan on how to address future change that was inevitable which affects the business with large impact. These professionals have the required and necessary experience, expertise, and qualification to allow owners to make the most of their capital investments. They can evaluate the viability of a business model to enable them to draw outlines of strategies while creating timelines for the path towards profitability.

Here are some fundamental benefits that can easily express how a financial advisor can help a business.

  • Competent Help

To make life easier, a financial advisor understands which questions ask to find out the correct answers for business owners. Effectively enhancing the efficiency while adding to profitability, these experts focus on the action to provide results. The modern entrepreneur has many roles to play in a business and stretch themselves thin at times. While tending to IT needs and then rushing to packaging and delivery section to follow up on orders, many important financial matters may become burdensome. Cash flow monitoring and aspects of monetary essence can be easily mishandled leading to severe obscurities. Mismanaging money is the most commonly recurring problem for many businesses. Hiring a financial advisor has to be one of the best things that can happen to a business.

  • Cost Savings

While performing specific functions for a business, the owner will not be able to control the path the business is on. small business owners save time and money by hiring a professional that carry out complex tasks which ultimately lead the owner to make decisions that are based on facts, figures, and numbers and also from a position of strength. Accounting processes, for example, to monitor expenses can be established by a financial advisor that in turn leads to ledger-bliss. A capable advisor can help business owners to avoid mistakes that may cost them dearly and save them a lot of angst.

  • Planning Ahead

In dealing with matters of the finances, a cool perspective is greatly needed. Being overwhelmed or confused can lead to inadequate decision-making processes that won’t be able to hold in the future. Professional advisors can provide clarity, vision, and direction that is the foundation of stability and growth. By giving facts and assessing the schedule, they can navigate through financial issues. Planning and projecting outcomes of the future in a business can be tricky and many business owners seldom consider market changes, technology, or other aspects that can prove to be crucial in a business.

Types of Financial Fraud In Business

Asset misappropriation

Asset misappropriation is the type of fraud that involves a member of staff who uses their position to take from their employers. This fraud is often committed by those trusted to manage the interests and assets of a company, which can include board members, employees or directors.

This type of fraud activity can include theft of company formulas, patents, or sensitive data, theft of credit notes or vouchers, inventory theft, theft of money or check forgery.

Any company that suffers from asset misappropriation will experience cash flow issues in some form. Plus, it can also have a negative impact on staff morale and the company’s reputation. It is believed that over 90% of business fraud is related to asset misappropriation which makes it by far the most common issue. On average, the lost from this type of fraud is in the region of $150,000 per case.

Bribery and corruption

Bribery and corruption is the next most common issue related to fraud in a business environment. Even though this type of fraud is less common than asset misappropriation, the average cost of a bribery scheme is significantly higher, and likely to exceed over half a million dollars per case.

The type of schemes involved in this area are quite broad and can include substitution of inferior goods, manipulation of contracts, bribes to influence decision-making, shell company schemes and kickbacks.

Financial statement fraud

Financial statement fraud takes place less frequently, but is almost certainly to be the most experience per case. On average, this type of fraud can lead to a company losing up to $2 million per case. This fraud involves an entity or individual falsifying earnings or income statements in an attempt to make a financial gain for them.