Safeguarding is a counter or a precautionary measure that a company may take to protect itself or ensure that it protects its interest in case of a threat, attack, or breach of an accord. This paper explores various ways that a company or a business uses to safeguard its assets. It analyzes the ways of safeguarding in business and finance, the changes in funding, the ways of finding funds, the financial situation, the ways of cutting funding for the businesses and how businesses safeguard their business assets. The manual reviews of the financial records of an organization are also critical in enabling the management to ensure that each financial entry into the books of accounts are accurate and up to date. Various methods were used to come up with an idea on how companies safeguard their businesses and finances. The study utilizes qualitative methods and the use of primary and secondary methods.
Safeguarding
Introduction/background
Safeguarding is a critical issue in the business world (Moberly 2014, pp. 1). According to Moberly (2014, pp. 1), safeguarding ensures the preservation of tangible and intangible assets in the organization. With the increased uptake of technology in the business world, there is increasing concern amongst business leaders on the need to protect their daily operations from the access of unknown people. Businesses must ensure that they take both precautionary and counter measures that would serve to protect their interests in relation to a threat, attack or infringement. In the business set up, the management of a company often lay measures that would ensure that the expenses that a company incurs are prosper recorded and reconciled. Additionally, any variances that are recorded from the financial recording have to be explained. The manual reviews of the financial records of an organization are also critical in enabling the management to ensure that each financial entry into the books of accounts is accurate and up to date (Wood, Brown, and Howe 2013, pp. 369). According to Wood, Brown, and Howe (2013, pp. 369), the management of any company has the mandate to minimize, accept, and mitigate risk.
The advent of corporate fraud and the increasing uptake of technology in the business world create the basis for conducting research on safeguarding. In many cases, corporate fraud results when the management or an executive official of an organization manipulates the books of accounts of an organization to facilitate fraud (Hipfli.org 2017, pp. 1). In other cases, some members of the management team could lead the vital data of the organization to the business rivals, which, in turn, compromise the operating advantage of the company. Such creates the basis of researching on safeguarding with emphasis on topical areas such as changing in funding, finding the fund, financial fund, financial situation, and funding.
Research Questions
1. What are the ways that the company can safeguard its business and finance?
2. What are the effects of changes in funding?
3. How do businesses obtain their funds?
4. What are the financial situations that the companies find themselves when carrying out their day to day business?
5. What are the ways that businesses use to cut funding for their businesses?
Aims and Objectives
The main objectives include;
1. Evaluating the ways of safeguarding in business and finance
2. Analyzing the changes in funding
3. Analyzing the ways of finding funds
4. Evaluating and understanding the financial situation
5. Understanding the ways of cutting funding in the businesses
6. Understanding how businesses safeguard their business assets
Literature review
Securing data within the enterprise
The optimum skills achieved in the theories of business help in advancing the knowledge of the financial practitioners in carrying out the business objectives. As such, securing data within the enterprise will enable the management keep off incidences like malpractices organized to hack certain business secrets (Gitman, Juchau and Flanagan 2015, p. 88). Additionally, proper security procedure will serve to ensure that all the data stored are backed with up-to-date virus protection that will prevent malicious data attacks within the enterprise. On the other hand, safeguarding business improves the banking technology; the enterprise may advance into using internal online banking with secured security details, thus, enhancing efficiency in the transaction process. In the case of networks, the management may resolve to advance the network servers that enhance easy transactions, the inflow goods within the enterprise, and the goods leaving the enterprise (Burns 2016, p. 133). The business is eligible to employ internet service provider that will advance installation of the firewalls within the enterprise to help reduce the instances of malware attacks in the case that the company is using windows in data transfers.
The business will have an organized framework that will address the strengths of an enterprise. For example, business insurance is one of the main strength of business prosperity. To protect the business income inflow, the enterprise will need to be safe against overtaxing policies. On the other hand, this will also help the business to be dependent, and thus, control its internal operation based on their objectives. Additionally, this will contribute to sustainability measures that will take the business progress through many stages as guaranteed by the business objectives (Milani, García-Bañuelos, and Dumas 2016, p. 147). As such, the business will consider employing qualified individuals within the enterprise that will enhance decision making to resources that need to put in place to push the business to better levels. On the other hand, the business will consider expanding its marketing programs to promote the sale of goods and services. Such circumstance will contribute to the identification of certain marketable good and services.
Safeguarding cash to ensure businesses maximize their cash flow.
To ensure proper safeguarding in the businesses, certain measures must be put in place. This includes; putting internal controls, i.e., supervision, monthly checks, putting in place measures to cut funding in the business, locking and protecting the company’s valuables, etc. (Hart, 2017, para 1). The accretion of cash facilitates the appropriate echelon of ventures that guarantees that other flows (operational flow, sales flow, and financial) ensure an increased cash flow (Hart 2017). Financial information, in addition to financial flow, processing accounting and providing management reports and financial results, needs to be put together in internal gearshift to safeguard the company’s assets (Hart 2017). There are many procedures that exist in helping the safeguard of cash in the businesses. This includes properly handling expenses and checks reports, reconciling and monitoring the budget, i.e., monthly and coming up with the controls that ensure proper monthly reporting in all sectors of the business. When a business uses these processes, it is able to control and safeguard its assets thereby maximizing its profits.
Finding funds
According to Hall (2012), boostrapping is one of the ways that entrepreneurs or businessmen can fund their businesses. According to Hall, in the experimental or the idea stages of the business, the entrepreneur needs to utilize his or her own financial income or resources i.e., money from personal credit cards or money from his/her savings account. According to Hall (2012), smart usage of these valuable dollars is significant. Crowdfunding is another way that a company can use to find funds
(Rees-Mogg 2013, pp. 1). In this way, people come up to fund a venture or a business by raising a certain amount of money from a large group normally by the use of the Internet (Hall, 2012). Friends and Family may also come in place to help a business grow. In many cases, the owners of the business invite their friends and family to invest in the business with the consideration that their cash used in the growth of the business may not be refunded. In many cases, these family and friends usually invest in the business owner, not the owners business (Hall 2012).
Safeguarding the Companies Assets, i.e., through Internal Controls
Smaller firms with two or three workers administrating all of the business assets and finances are predominantly vulnerable to embezzlement of assets. Most of these firms have no balances and checks to authenticate or validate that the business transactions are appropriate and accurate or not. In the study done by the Association of Certified Fraud Examiners’ 2016 Report to the Nations, of all the cases they did, the median loss was $150,000 (Acfe.org 2016). Also, the median loss increased to $850,000 when the schemes lasted five years (Acfe.org, 2016). According to the research, the companies or firms that had fraud hotlines could easily notice fraud than those without through tips (Acfe.org 2016).
When suitable operational and financial controls lack in business, workers and their bosses can learn how to influence and manipulate the companies accounting procedures and system to benefit themselves. Whether their errors or misconduct are undiscovered or when they take the money from the corporation without recording, the outcome can seriously affect the organizational financial reports, management decisions, pecuniary stability, and tax filings (Hart 2017). Regrettably, once the business financial reports have been distorted, noticing the problems is exceptionally hard. Most typical accounting principles are not premeditated to expose internal errors such as misappropriation of funds, i.e., embezzlement. According to Thus, the most excellent method or technique to safeguard the firm’s company’s property is to improve and identify faults in the company’s internal procedures.
According to Hart (2017), the following business procedures and practices may assist the business to reduce the possible internal control errors and problems; (1). Management ensuring that they set up a tone at the top: the organizational administration must put up an ethical environment in the place of work and ensure or support the values every day or at all times. This ensures that the workers act in the similar approach and style as the one set by the management; (2). The management needs to ensure that the related duties or responsibility are allocated to different individuals. Certain operational and accounting responsibilities are intended to cross-reference with each other for accurateness: signing, writing, and sending of checks; Paying for, ordering, and receiving of supplies; Accepting client orders, invoicing clientele, and fulfilling orders; Recording cash and handling cash in the accounting system (Hart 2017). These procedures may help the organization to identify the irregularity in its financial records in a well-timed way; (3). Scrutinizing and reconciling the company’s bank reports each month: A bank report usually tells the business owner’s a lot about their company if they analyze the bank statement in an appropriate and timely way. Examining checks and approvals, evaluating payroll checks with workers paperwork or accounts, and asking questions, tracking dealings between financial records, and examining bank records for bizarre or strange cash transfers or withdrawals helps the business or the company to safeguard its assets; (4). Examining the supporting records before the manager authorizes a business deal: When the company manager is adamant on reviewing original documents, the companies workers happen to more precise and converse their requirements or needs in a precise way. The company managers or supervisors need to confirm the details of their merchants and their workers infrequently. Also, they need to (managers) remember to rescind supporting resources after ordering or signing the checks; (5). There is a need for managers to protect and lock the company’s valuables (Hart 2017): Keep signature stamps and blank checks protected and safeguarded and deposit checks and cash on a daily basis. The company managers also need to ensure that they stamp all the checks that are received or obtained daily for the purposes of deposit only. To ensure the proper safeguard of assets, the managers must also ensure proper for insurance key business personnel’s and secure fidelity bonds; (6). The company managers must know their workers and be able to examine their manners or behavioural changes: It is important for the organizational bosses to authenticate and validate workers orientations before employing them (Hart 2017). Also, the managers must consider the reasons for conducting other backdrop checks as suitable, as well as the need for motor vehicle information, unlawful searches, and credit information. Numerous white-collar offences are not reported, and they still carry on being repeated (Hart 2017).
Understanding the financial situation
Many companies provide their employees with their economic and financial background so that the workers can understand how the company got to its present financial situation (In Dunham-Taylor and In Pinczuk 2015, pp. 377). The present turmoil in the financial industry has made the UK economy and the markets unstable due to the Great Depression. Many small business owners wonder if they are a casualty of this financial crisis (Ddhart 2010). According to Ddhart (2010), the small business owners or the entrepreneurs need to end the handwringing and begin acquiring antagonistic acts to safeguard their businesses. According to Morini (2011, pp. 16), there is always the uncertainty about the financial situation in a company. Proper pricing is essential in ensuring that the company is able to perform well with the market (Morini 2011, pp. 16)
According to Ddhart, there is nothing stressful like an economic catastrophe to the businesses. To ensure that the business succeeds, the business owners need to, (1). Protect their credit: this is one of the golden rules that the businesses must obey. As the credit critical situation gets tough, it is important that the business makes sure that it has the finest credit possible to guarantee the business owners that they can obtain a loan if they require or need one. The business owners must make sure that they pay their bills on time and if the company or the business has any problem or troubles in making the payment, the company must notify the bank or the lending company as to why it might be late paying; (2). The company owners must show their employees love and provide better remuneration. This helps the company or the business owners to have their employees on their side, thereby ensuring more productivity for the company (Ddhart 2010).
There is a need for the employee’s to be appreciated for the good job that they do for the company (Ddhart 2010). Showing them much respect helps them to feel appreciated; (3). There is a need for the business to re-examine its credit terms as the companies are owners are running a company or a business, not a charitable trust (Ddhart 2010). The business owners must notify their late paying customers to pay on time when the time gets rough; (4). There is a need for the owners to provide an online platform if they don’t have one so that they can guarantee more sales. This will help the company to stay in front of others in times of financial crisis as the company will maximise its presence online, thereby bringing more customers. An attractive website will ensure that the customers visit the site and purchase their goods and this ensures a better way to stay ahead of the clients; (5). There is a need for the company bosses to keep an eye on the competitors. This helps the company to copy some tactics that can help it to do well in the market. This helps the company to copy the unique opportunities that can help it to grow big. Essentially, getting feedback from the company’s client is important in ensuring the business is able to cope well with the market. This helps the company to improve its products according to the customer’s specifications and wants.
Analyzing the changes in funding
There is a need to analyze the changes in funding so that the business can know where it is heading. No matter the complexity or the size of the business, there are some levels of effort, tools, dollars, hours, people, etc. given the mandate to manage that project. This may include oversight, scheduling, cost tracking and planning, communications, managing risks, metrics analysis, reporting, etc. Companies need to know the implications that are there when they change their funding. There are many trends that are coming about where the businesses are being financed. Many people have been talking about these trends and many of them are trying them to ensure that their businesses succeed, i.e. superangels tech financing (belated IPOs; secondary sales or market sales and more). The companies are changing their fundings from the old ones to the newer ones, i.e., equity, late-stage private, crowdfunding, the long-delayed ipo accelerators, and the super-angels (Gobry 2011).
Ways of cutting funding in businesses
There are many ways that the company can cut funding for the business. Outsourcing is one of the ways that the businesses can use to cut costs. Contracting individuals, contractors or freelancers for temporary jobs can help the business in cutting its expenses (Fallon 2014). The company can largely cut its costs by employing temporary workers to fill the current or future job positions. This also helps the company to cut the training and recruitment costs. The hiring of the interns also helps the businesses to cut costs, and this is one of the
win-win situations. Employers benefit from low-cost labour while the interns obtain the valuable experience though the interns may require much training on the company’s procedures and software’s before they start working. There is a need for the company to keep this in mind Keep when considering the benefits and costs of this approach. Proper R & D is important in ensuring the success of the business (Brennan and Vecchi 2011, pp. 2). Companies that employ innovation are able to cut costs in their business as spend less in their production.
There is a need for the company to use email when possible so that it can reduce its expenses. Using electronic methods when sending messages, i.e., greetings to clienteles and sending the requests to the suppliers helps the company to save much in terms of costs. Miniature expenses or costs, i.e., envelopes, stamps, and paper can be expensive and cutting this can help in making differences. Paying invoices on time may help the company to cut costs as the
vendors offer cut rate for paying them (goods) on time. After building trust, the company can obtain goods on loan and pay after sale (Fallon 2014). There is a need for the business to buy new equipment so that it can cut costs in future. With the rate at which the technology is constantly changing and moving, the company can obtain big discounts on hardware’s and software’s that were newly reinstated by a recent version (Fallon 2014). Used apparatus can be helpful as new ones, but at a few days, these machines can be sold at a lower price.
If a company can allow its workers to work from home at least one day per week, this can help the company to save costs, i.e., electricity bill (Fallon 2014). There is also a need for the company to figure out how it can cut its costs. The company needs to do a thorough investigation of the ways it can reduce its costs so
that it can be able to do well in the market.
Methodology
The study used a qualitative method in analyzing and collecting secondary and primary data. A qualitative study has been linked with an experimental study that is constructive, thereby implying that variables used in the study are examined in their usual setting without manipulation (Neuman 2012). Because the research involved or focused on the safeguarding business and finance, a qualitative method helped the researcher to establish a physical interaction with the subject.
The primary research methodologies were also used i.e. observation. The secondary data collection methods are majorly derived from the previous research conducted by researchers as the literature review demonstrates. A variety of sentiments by researchers in the field of business are evaluated so as to come up with an accurate significance of safeguarding in the current world of business and finane. Books, journals, and internet were used as a research methodology to come up with the precise answers to the topic. Documentaries were also used to gather information essential to the proper completion of the study. There are studies that have been done on the safeguarding of the business assets, and these were very important to the study.
Analysis
The advent of corporate fraud and the increasing uptake of technology in the business world create the basis for conducting research on safeguarding. In many cases, corporate fraud results when the management or an executive official of an organization manipulates the books of accounts of an organization to facilitate fraud. Many entrepreneurs are realizing that their company’s assets are not well protected. Many instances, the business owners are finding that they are misappropriating their assets due to the lack of proper safeguards in their business.
Many are the times that the business owners often find that they do not have balances or checks to authenticate or validate that their transactions are appropriate or accurate. To ensure proper analyses both the secondary data and primary data are important. This study mainly utilized the secondary data from journals, books, internet, etc. The data collected specifically through scholarly peer-reviewed journal articles and books in addition to other online resources was properly analysed through the use of computer-assisted techniques such as SPSS to come up with precise information. The researcher used search engines to ensure that all the information collected concerned the topic at hand.
Findings
Many instances, the business owners are finding that they are misappropriating their assets due to the lack of proper safeguards in their business. Many are the times that the business owners often find that they do not have balances or checks to authenticate or validate that their transactions are appropriate or accurate. The graph below shows how the companies conduct financial crimes. Many firms do Trillion-dollar crimes, and this is one of the financial dishonesty that is brought by the devastating global impacts. This costs the countries as money is handled fraudulently (Hsbc.org 2016)
Source: (Hsbc.org 2016)
Many companies are trying to put certain measures ensure that their properties or assets are safeguarded. This includes putting internal controls, i.e., supervision, monthly checks, putting in place measures to cut funding in the business, locking and protecting the company’s valuables, etc. these internal controls are largely helping the business to safeguard its assets and this minimizes employee’s theft. According to the study carried out by Hipfli.org (2017, pp. 1), most of the frauds done in the companies are done by employees who have been in service for 1-5 years (42.4%), followed by those 6-10 years (26.5 %), and 10 years and above (22.9%)
Hipfli.org (2017, pp. 1)
Discussion
Proper R&D is important in ensuring the success of the business (Brennan and Vecchi 2011, pp. 2). Companies that employ innovation are able to cut costs in their business as spend less in their production. Businesses must ensure that they take both precautionary and counter measures that would serve to protect their interests in relation to a threat, attack or infringement. The assessment of the liabilities and assets of a company need to be regularly assessed with the intention of ensuring that they have accurate compared to the previous records. Some members of the management team could lead the vital data of the organization to the business rival, which, in turn, compromises the operating advantage of the company. The assessment of the liabilities and assets of a company need to be regularly assessed with the intention of ensuring that they have accurate compared to the previous records. Safeguarding business improves the banking technology; the enterprise may advance into using internal online banking with secured security details, thus, enhancing efficiency in the transaction process. Employing qualified individuals within the enterprise mainly helps in enhancing proper decision making to the resources that need to be put in place to push the business to better levels. In businesses that do not have finances, crowdfunding can be a good way that a company can use to find funds. In this way, people will venture into the business by raising a certain amount that will enable the company to carry out its operations effectively.
According to Hancock, Bazley, and Robinson (2015, pp. 200), internal controls helps the business to safeguard its assets, and this minimizes employees theft. To safeguard assets and cash in the business controls, i.e., monthly reporting is necessary for ensuring the smooth running of the business. This helps in ensuring proper operational flow, sales flow, cash flow, and financial flow (Hart 2017). Travelling less can also save money and time if the company avoids unnecessary trips. The usage of online resources, i.e., Skype and Webex in conducting gathering with individuals in different locations instead of travelling to their respective areas can help to cut costs in the business. Telecommunication also helps to cut costs as the employees are able to work from home.
The assessment of the liabilities and assets of a company also need to be regularly assessed with the intention of ensuring that they have accurate compared to the previous records.
Conclusion
To safeguard assets and cash in the business controls, i.e., monthly reporting is necessary for ensuring the smooth running of the business. There are many procedures that exist in helping the safeguard of cash in the businesses. This includes proper handling of expenses and checks reports, reconciling and monitoring the budget, i.e., monthly and coming up with the controls that ensure proper monthly reporting in all sectors of the business. When suitable operational and financial controls lack in business, workers and their bosses can learn how to influence and manipulate the companies accounting procedures and system to benefit themselves. Regrettably, once the business financial reports have been distorted, noticing the problems is exceptionally hard. There is nothing stressful like an economic catastrophe to the businesses. To ensure that the business succeeds, the business owners need to keep an eye on the competitors. This helps the company to copy some tactics that can help it to do well in the market.
Recommendations
There is a need for managers to protect and lock the company’s valuables so that they can safeguard their assets. Keep signature stamps, and blank checks protected and safeguarded and deposit checks and cash on a daily basis. There is a need for the company to use email when possible so that it can reduce its expenses. There is a need to analyze the changes in funding so that the business can know where it is heading. No matter the complexity or the size of the business, there are some levels of effort, tools, dollars, hours, people, etc. given the mandate to manage that project. There is a need for the business to buy new equipment so that it can cut costs in future. With the rate at which the technology is constantly changing and moving, the company can obtain big discounts on hardware’s and software’s that were newly reinstated by a recent version.
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