18 Jul Survey shows internal audits and tracking finances keys to better business
A new survey from major financial consultancy Ernst & Young highlights the importance that many executives put on internal audits and maintaining a balanced company budget – a task that can be facilitated with custom database software.
“Internal audits can use the organization’s overarching organizational strategy to identify the risks that matter the most in the context of the organization’s risk appetite,” said Randall Miller, Ernst & Young’s advisory global risk leader. “Elements of the organizational strategy will vary by industry and are very specific to the business but to remain relevant, internal audit needs to use risk assessments based on the organization’s strategic objectives.”
According to the study, 75 percent of the surveyed chief audit executives (CAEs) and other C-suite executives believe that strong risk management has a positive impact on a company’s long-term earnings. In addition, 75 percent also believe that an internal audit has a positive impact on overall risk management tasks.
In addition, Inc. Magazine has spotted a few specific expenses that many companies can keep better track of, a duty that can be fulfilled by using custom database software.
According to Inc., companies may want to pay close attention to their shipping expenses, as these can easily add up. With many companies such as FedEx and UPS making overnight deliveries their default, businesses can rack up quite a hefty shipping bill fairly quickly. By using custom database software to track all shipping payments as well as their timeliness and efficiency, companies can see whether these investments are worth it.
Also, if companies aren’t careful on their workforce expenditures, these could surmount to a heavy burden fairly quickly. If businesses allow employees to use a corporate credit card or reimburse these individuals for company expenses, they should be able to track these expenses.