What is a Key Takeaway From a Financial Audit That Led to Process Improvements?

An interesting conclusion of a recent financial audit that enabled us to make considerable upgrades in our processes was the identification of the root causes of weaknesses in our expense system. What became very clear from the audit was that the previous process of expense tracking and classification we employed was not efficient, hence the reason for waste and poor reporting on financial aspects.

To address this, we adopted an advanced expense processing solution that automatically feeds and classifies the expenses made, which is far more sophisticated than the previous categorization system, while also linking it to the accounting system we use. It would not only reduce the workload of entering the data but also enhance the efficiency of our books. The improved understanding of expenditures allowed us to renegotiate some contracts with vendors, shift budgets from low-performing items to more valued ones, and ultimately save more.

Additionally, the audit revealed the infrequency of internal reviews. We have been implementing quarterly 'mini-audits' to identify and resolve issues as close to their occurrence as possible, and this, in turn, has led to improved finance and control aspects and better decisions. It is this planned strategy that has helped to boost the organizational culture of the finance team, thus promoting the long-term effectiveness and growth of Sterling Global.