How much does a data breach cost? The average has reached an all-time high of $4.35 million, according to the newly released “Cost of a Data Breach Report 2022.” As businesses and nonprofits increasingly rely on technology, cyberthreats are becoming more sophisticated and aggressive, and risks are increasing. Hackers may try to steal sensitive information about your organization’s employees and customers. Or they may steal valuable intellectual property. Auditors factor these threats into their risk assessments. They can also help draft cybersecurity disclosures and brainstorm ways to mitigate your risk of an attack.
If your company is still using some paper-based accounts receivable processes, maybe it’s time to fully automate your system. Just be sure to set a feasible budget and invest only in a solution that suits your well-specified needs. Why? Digitalization streamlines the cash conversion cycle. You might even be able to reassign accounting staff from administrative tasks to more value-added ones. Customers like it, too, because they don’t have to write paper checks. Some buyers might submit e-payments more quickly to capture discounts or easily remove a task from their to-do lists. And, assuming it’s secure, the right software can help prevent fraud.
The CHIPS Act aims to bolster semiconductor production and economic competitiveness. Among its provisions is an investment tax credit for manufacturing facilities and equipment.
If you regard your not-for-profit’s annual report as a yearly obligation or even an unpleasant chore, the finished product probably isn’t much fun to read. Instead, embrace the opportunity to promote your mission and programs to a broad audience. Start by providing clear, easy-to-read standard sections, such as the Board Chair’s letter and financial statements. Then get creative with the report’s description of programs, goals and achievements. Include client profiles and testimonials to personalize your message. And whenever possible, use visual elements such as photos and infographics.
Is your business struggling? If you have “substantial doubt” about its ability to continue normal operations, you may encounter financial reporting issues. Here’s important information to review.
You don’t have to wait for the next scheduled audit to assess your nonprofit’s financial health. Instead, think like an auditor and review revenue numbers for negative trends. Here’s how.
A high bonding capacity is a strategic objective of many construction businesses. How do you build it? With a solid foundation. For starters, ensure your financial statements are complete, accurate and timely. One critical indicator is profitability. Projects that suffer from “profit fade,” when gross profits shrink over the course of a job, often indicate weaknesses such as inaccurate estimating and sloppy management. Sureties also want to see strong working capital, which is defined as current assets minus current liabilities. To improve this, consider deferring year-end bonuses or refinancing short-term debt with long-term debt.
Pandemic-related lockdowns have forced auditors to conduct many procedures off-site. That change may not necessarily be temporary. After realizing the potential benefits, remote audit procedures may be part of the “new normal” going forward.
