1. Delayed account closings
Without regular closings, management may rely on incomplete information. Identify whether delays arise from missing records, outstanding reconciliations or unclear processes.
2. Repeated reconciliation differences
Differences between bank and ledger or sales and collections need documented explanations. Timing, missing entries or errors may be involved; investigate before concluding.
3. Sales growth with cash pressure
Review collection cycles, inventory, payments and obligations. A business can be profitable in its accounts while credit sales delay cash receipts.
4. Ageing balances and missing evidence
Monitor receivables ageing and reconcile supplier balances. Identify transactions without adequate evidence. A weekly follow-up list helps prevent recurring differences.
5. Unexplained variances
Compare revenue and costs with budgets and prior periods. Investigate changes in margins and costs, then assign an action, owner and follow-up date.
Start with regular reconciliations, profitability and cash-flow reporting, and a list of differences. A broader professional review can be scoped according to the issue and evidence available.
General educational information, not a substitute for advice on your individual situation.
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