here’s what you’re looking for: edward mendlowitz

it doesn’t matter how great the system is.

by ed mendlowitz
77 ways to wow!

my last column addressed the importance of controls when trying to get a client. but it is also important to retain the client. a good system that is not monitored is a sure way to not only lose the client but be kept awake at night.

more: how to explain internal controls to clients | the ten financial controls that’ll make you a hero | five cash reports you can’t live without | when an audit is a great thing
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if you have been around long enough, you’ve experienced a theft at a business or not-for-profit organization. for nearly ever fraud i have seen, the slightest effort would have thwarted those frauds. nowadays the only frauds i encounter are new engagements, where i try to quantify what was taken.
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then you have to use them.

by ed mendlowitz
77 ways to wow!

what are internal controls? auditors widely use this term. it also appears multiple times in engagement letters for audits of businesses and not-for-profits, but i do not believe many outside of the accounting profession really know or understand what internal controls are. i will try to explain it here.

more: the ten financial controls that’ll make you a hero | rule #1: start with cash | the priorities were backward | how to read a financial statement | 77 thoughts about client needs
exclusively for pro members. log in here or 2022世界杯足球排名 today.

internal controls refer to an organization’s system of deterrence, oversight, checks and balances. an illustration is where someone in a business writes and mails the checks to pay a bill. if this same person then receives the bank statement and performs the reconciliation of that account, there would not be any control or oversight on that person and whether the payment was proper and not misdirected. they are checking their own work. this is how many frauds occur.
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lots of information is lurking there.

by ed mendlowitz
77 ways to wow! the checklist handbook for small-business advisory services.

one time i was asked to audit a hotel in florida that was going to be foreclosed on by the mortgagor and for which i was paid in advance. the audit was planned and scheduled, and it looked like we had everything under control from our end as much as we could.

more: organization minutes too often overlooked | five cash reports you can’t live without | when an audit is a great thing | which kpis do you need?
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i received a call on a friday morning that the foreclosure was going to take place sooner than expected, and i had to either do my work monday through wednesday or return the retainer because the foreclosure was going to take place on thursday. i took a sunday evening flight with a senior accountant. when i walked into the hotel, i got really nervous. this was not a small motel but a big hilton hotel – not what i anticipated.
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your reviewer should be adding value.

by ed mendlowitz
101 questions and answers: managing an accounting practice, the complete 2-volume set

q. i want to improve my firm’s review and quality control. do you have any suggestions?

more: how to get into your own cpa practice | 15 tips for novice managers | what’s your ‘kg’ value? | when clients call you at home | why partner retreats are worth the cost | selling your practice is not a retirement strategy
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a: this is a recurring issue for most firms. every cpa practice needs quality control. the issue is whether a dedicated quality control (“qc”) person is needed, and if not, how the qc can be done without one.
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we’ve got a 34-point checklist to fix that.

by ed mendlowitz
77 ways to wow! the checklist handbook for advisory services.

corporate, llc, partnership and not-for-profit organizations are usually required to have minutes memorializing certain actions taken by the board of directors or governing body. yet, many do not either because it has never been done, is a bother, is considered not necessary or overlooked through inaction or unawareness.

more: five cash reports you can’t live without | the priorities were backward | how to read a financial statement | 77 thoughts about client needs
exclusively for pro members. log in here or 2022世界杯足球排名 today.

however, it is something that should be done as a best practice, as recognition that there are non-active stakeholders who need transparency, or as tangible evidence that the actions recorded took place timely. in some instances, the irs looks for minutes as a symbol that the affairs were handled on a businesslike basis or were not one-sided “secret” actions by those in control.
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profits don’t mean a thing if they’re not represented by cash.

by ed mendlowitz
77 ways to wow! the handbook for small-business advisory services.

cash is the lifeblood of a business. cash amounts. cash flows. cash changes. no matter what anyone tells you, cash is the bottom line you must watch and accumulate.

more: the priorities were backward | the seven-minute financial statement | the kpi an absentee manager needs
exclusively for pro members. log in here or 2022世界杯足球排名 today.

simplistically, knowing your cash balance gives you a sense of how you are doing. if it goes up, you are making money – if it goes down, you are losing money.
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