Month: August 2023

Key Features

These systems bring together the core functional areas of a business, including finance/accounting, operations, human resources, marketing, sales, and customer service.  When done correctly, the system provides a framework for different departments and teams to work together to achieve the company’s goals.  Processes are established for planning, organizing, executing, and evaluating different aspects of the business (e.g., budgeting, personnel/asset allocation, project management, performance monitoring, etc.). A Business Operating System can be industry-specific or tailored to a business model to fit a company’s unique needs and objectives.

In terms of products, there are many such systems on the market including the Entrepreneurial Operating System® (EOS), Six Sigma, Lean Management, and Total Quality Management.

How MyCFO Helped

In one of our recent engagements, we installed a Business Operating System for a wholesale/distribution client.  From a big picture perspective, the client needed to have a better process to measure goals, identify available information and how to measure it, and identify if issues are one-time or non-recurring (then track recurring issues).  Personnel needed to be able to run the system once it was in place.

Some of the benefits of the business operating system included:

• Setting the right goals, assigning responsibilities to the proper people for all the underlying tasks needing completion to reach those goals, tracking progress for each of those tasks and holding individuals accountable for the corresponding responsibilities.
• Ensure all personnel understands leadership’s vision, the company’s goals and the roadmap for getting there.
• Ensures key performance metrics are monitored and prioritized.
• Ensures managers and direct reports remain in contact and work toward the same goals.
• Helps managers objectively determine whether an employee is a good fit for the organization and its values.
• Accountability chart to clarify important functional information for each role.
• Provides an effective framework for navigating disagreements and conflicting priorities.
• Provides a framework for running meetings, selecting attendees, setting agendas and tracking tasks, goals and responsibilities.
• Define the meeting format and agenda, both for the leadership team and individual departments.
• Establish a continual, efficient method for getting things done, and holding the correct staff accountable, results.

Need help?

If you’re interested in setting up a Business Operating System, contact us today!

Business fraud and embezzlement involves deceiving an employer by misappropriation of funds.  It is usually a premeditated crime, sometimes performed through ingenious methods and other times concealed very sloppily.  Quite often someone in the accounting/finance department is the crook.

Why Commit the Crime?

The “fraud triangle” is a model explaining three factors that lead to an employee committing fraud: pressure, perceived opportunity, and rationalization.  Financial pressures (e.g., out of control expenses, expensive tastes, divorce, etc.) can be a tipping point in stealing cash or falsifying financial statements.  The “opportunity” arises when the employee realizes he/she uses a position of trust to commit fraud, usually with a low risk of getting caught.  The perpetrator then “rationalizes” the act by feeling underpaid or underappreciated, or the employer doesn’t really need the money, etc.

Recent Engagement

In this recent engagement, MyCFO was brought in because the business owner suspected something was wrong with cash flow.  He knew the company was making money but the bank account perpetually seemed to be empty.  Eventually, the office manager was suspected of having something to do with it.

In terms of responsibilties, the office manager was in charge of payroll and was fully entrusted with running it.  The owner never looked at anything besides the end result.  This allowed the office manager to exaggerate her hours and overtime, fabricate non-existent “ghost” employees, and steal hundreds of thousands of dollars.

MyCFO quickly identified the embezzlement, documented the crime, and provided information for criminal prosecution and civil action.

Broad Scope of Fraud Investigation

MyCFO’s fraud and embezzlement investigation engagements can involve a number of investigative techniques, including:

• Reconcile bank accounts
• Review payroll lists and personnel files for current/former employees (including start and termination dates)
• Review withholding and benefit deductions
• Trace schemes that move through third parties
• Detect vendor kickbacks
• Identify fictitious vendors
• Examine processed checks, payments, and direct deposits
• Identify inconsistencies in pricing on invoices
• Track electronic transfers and payments
• Scrutinize documentation supporting disbursements

Need help?

If you suspect fraud and embezzlement in your workplace, contact us today!