Wednesday, May 5, 2010

Managing Corporate Finance

I am very surprised with the Account @ Finance Department for some of the corporate organization in Malaysia. Why I said so is because they did not check the invoice properly before issuing the payment. Even the payment voucher has 3 different signatures (meant at least 2 person had verified the payment), still the account is not correct. Most of the time, they payment made late. Thus, there are balance brought forward to the next invoice. Without checking the status of the previous payment, they issue another new cheque including the previous payment which they had made earlier, resulting in overpayment.

I am wondering how come such a well known corporation has such a poor monitoring or checking system. And not only one or two huge corporation but quite a number of them. Is it because they money is not theirs, so they take little effort to ensure the accuracy?

If you are planning to have your own business, make sure you monitor the finances well, especially account payable. Ensure you hire a careful personnel to manage your finances. And you yourself must check the cheque properly before signing on it.

If you are a personnel working in Account or Finance Department, make sure you keep proper records and double check the payment details before issue the cheque. Your boss will appreciate your effort.

5 comments:

  1. That the reason why there hire external auditors to check for discrepancies. :P

    ReplyDelete
  2. Hi Kris, yeah... Maybe I was looking for some perfection ;p But, honestly, if we are the business owner, we must ensure that we check the financial matter properly. Or at least, the one we hire must be careful with money handling.

    ReplyDelete
  3. This is my observation. Those who have been working in the company for years tend to think themselves like an expert. Sooner or later, the attitude of high self-esteem, laziness and carelessness built up. If their superior trust what they are doing and approves their works blindly, it does not surprise me the situation you have mentioned could happened. For me, I thoroughly checked every work my subordinates submitted before I gave my approval. I know it is a lot of work, but I believe, by doing so, it safe me from a lot of potential future problems.

    ReplyDelete
  4. This comment has been removed by the author.

    ReplyDelete
  5. LSC, perhaps you are right... Just that I was very surprised with these thing hapenning to huge firms...

    I like the phrase 'safe me from a lot of potential future problems'.

    ReplyDelete