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New Course: Best Practices for Preventing Business Credit Card Abuse

Best Practices for Preventing Business Credit Card Abuse

Protect your company from business card abuse.

There is a tremendous amount of debate centered on how business expenses should be funded, reported, authorized and reimbursed. Business expense fraud is #4 on the list of most common fraud schemes, behind corruption, billing and noncash. It lasts on average 24 months before it is identified and account for 11% of the total cases of fraud in 100+ employees, 21% in smaller firms according to the Association of Certified Fraud Examiners. This material will show you how can you protect your company and at the same time your employees against fraud while maintaining fairness and equity.

Runtime: 63 minutes

1.0 Credits: CLE, CPE, and SHRM

Faculty

Wayne Spivak
SBA Consulting, LTD

 

Best Practices for Preventing Business Credit Card Abuse Agenda

Short History of Business Expenses and How They’ve Grown

  • Started With Outside Sales People
  • Executives
  • Average Employees Have Business Expenses

Who Is Responsible for Business Expenses

  • The Business Should Provide Employees the Tools for Work
  • The Employee Shoulders That Responsibility

Payment Options

  • Petty Cash
  • Expense Report
  • Computer Based Expense Report

– Employee Owned Credit Card(s)

– Business Owned Credit Cards(s)

– Hybrid

Normal Problems With Each Type of Payment Options

  • No Receipt
  • Unauthorized Purchase
  • Error in Card Usage (They Took out Their Business Card, Not Their Personal (or Vice Versa)
  • Lost Receipts
  • Delayed Reports

Fraud

  • Fake Bills
  • Personal Expenses Taken as Business
  • Extravagant Amounts in Violation of Norms/Policy

For a CFO, How Important Is Industry Knowledge?

Just quoted in CFO Magazine.

 

CFO Magazine

In our Proformative question of the week, Wayne Spivak, president and CFO at SBAConsulting.com, writes:

How important is industry knowledge to the CFO? My thesis is that all businesses are about 90% the same. They all have cash-flow issues, budgeting, products and/or services, ownership (of some type), taxes, and compliance issues.

Yes, depending on the industry, sector or sub-sector there are differences (about 5%-8%), but CFOs as smart, energetic individuals can solve those issues by either a) learning them or b) using subject matter experts (which they will need regardless, since one can’t be a CFO and a SME on all subjects).

The last 2%-5% is company culture.

So, how important is industry knowledge to the CFO?

Answering the question, one consultant says while many skills are transferable across industries, the 90% level Wayne refers to above is likely lower.

Engineer in nuclear power station“There are many new-age industries emerging — high tech, data-driven service companies, a move to subscription revenue models, etc., that have nuances that not everyone has encountered in their careers,” says the consultant. “So in some cases I can see that the 90% level of commonality could be as low as 50% to 60%.”

Indeed, other respondents seem to think that industry knowledge is an imperative.

One European finance executive writes: “You don’t have to have it to begin with and you can certainly make improvements to a company’s bottom-line from a purely financial perspective; however, if you want to provide strategic business support to the CEO you better show you understand the industry.”

Agreeing, another finance executive says, “You cannot make the best decisions on numbers alone.”

But is industry knowledge really the expertise that the CFO needs to be a strategic partner to the CEO? A CFO responding to the post questions the premise:

“There is a propensity to conflate industry and business model,” he writes. [In my opinion], what is important is to understand the business model. Industry knowledge is much more constraining for the company and business models are easier to change or refine.”

He then provides an example: “In the SaaS world … where subscription models/contracts vary widely, [a CFO’s] revenue recognition knowledge from a different company may be useless to the new company.”

To see the responses to the question in depth or to add your own perspective to the conversation, go to the discussion on the Proformative website (registration required).

To find the CFO Magazine Article:

 http://ww2.cfo.com/strategy/2017/07/cfo-important-industry-knowledge/

Bloomberg: Companies Filing IPOs Shouldn’t Underestimate Accounting Challenge

Wayne Spivak of SBA * Consulting is quoted in this Bloomberg article:

Bloomberg BNACompanies Filing IPOs Shouldn’t Underestimate Accounting Challenge

Bloomberg BNA –

Reproduced with permission from Accounting Policy and Practice Report, 77 APPR, 4/24/17. Copyright
 2017 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com

Click Here:

Companies Filing IPOs Shouldn’t Underestimate Accounting Challenge

Bloomberg: Companies Confused About Upfront Fees for Cloud Services Rule

Wayne Spivak of SBA * Consulting is quoted in this  Bloomberg article:

Bloomberg BNACompanies Confused About Upfront Fees for Cloud Services Rule

Bloomberg BNA –

Reproduced with permission from Accounting Policy and Practice Report, 71 APPR, 4/14/17. Copyright
 2017 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com

Click to read the article:Companies Confused About Upfront Fees for Cloud Services Rule