How to get started with financial controls

Financial Controls

Date:

Category:

Share this article:

Financial controls are the protocols an organisation puts in place to ensure its financial resources are being used efficiently and responsibly.

As we explored in our previous article, good financial governance has a fundamental role to play in the stability and success of any business. Financial controls provide organisation-wide oversight to ensure a business operates within its means and maintains a steady course towards its strategic objectives. They also guard against various finance-related risk factors, ranging from cash flow problems to compliance issues to fraud and theft.

We also set out the case for why outsourcing financial controls to a third-party specialist maximises the benefits and protections, by accessing high calibre expertise, freeing up internal resources and providing greater flexibility over how you administer your organisation’s financial controls, which can also lead to cost savings.

But how do you get started implementing a robust set of protocols for financial controls? 

Understanding your current processes

You can’t plan a route anywhere if you don’t know your present location. If we extend the ‘journey’ analogy to implementing financial controls, the first step has to be gaining a clear picture of where you are at present – what your financial and operational processes look like, what their strengths and weaknesses are from a governance perspective, what risks and opportunities they present etc.

This is also another strong argument for outsourcing. Financial auditing is a specialist field. Many financial audits have to be carried out according to strict criteria to meet legal and regulatory requirements. 

That’s not the case if you are carrying out an internal audit with a view to overhauling your financial control regime. But that level of rigour is an asset, providing the depth and range of insight which will ensure you are developing a financial control strategy in full possession of the facts.

Some of the things a partner with a proven track record in financial auditing will be able to help you understand include:

  • How your current processes match up to established benchmarks for financial controls.
  • Where there might be gaps or anomalies in your financial reporting which need resolving if you are to gain full oversight.
  • How current financial policies stand up to a variety of different operational scenarios, and where there might be vulnerabilities.
  • How robust current business strategy and operations are, including things like cash flow, asset management and investment strategy, again tested against different possible future scenarios.
  • What material benefits suggested changes to your financial control regime could bring.

Another important point is that implementing financial controls cannot be seen as a one-and-done exercise. Businesses are living, breathing, dynamic entities, the contexts in which they operate change all the time, and therefore so do the priorities that determine and shape financial governance.

Part of getting started with putting financial controls in place should therefore include agreeing to a regular reporting and review structure to ensure that the controls themselves remain fit for purpose and in line with the best interests of the business. 

Interested in finding out how Xeinadin can help you get started with financial controls? Contact us today.

This field is for validation purposes and should be left unchanged.

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

If you opt for acceptance, we will place all cookies. If you opt for rejection, we will only place functional and analytical cookies. You can adjust your preferences at a later time.

Accept Reject More options

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

Functional cookies
Arrow down

Functional cookies are essential for the proper functioning of our website. They allow us to enable basic functions such as page navigation and access to secure areas. These cookies do not collect personal information and cannot be disabled.

Analytical cookies
Arrow down

Analytical cookies help us gain insight into how visitors use our website. We collect anonymised data about page interactions and navigation, enabling us to continuously improve our site.

Marketing cookies
Arrow down

Marketing cookies are used to track visitors when they visit different websites. The goal is to display relevant advertisements to the individual user. By allowing these cookies, you help us show you relevant content and offers.

Accept all Save

Name

Subtitle
Developer
Location
They are focussed on creating a future-focused and relationship-driven culture, that keeps its promises to you, our team members, and partners.
Xeinadin