Combating fraud earlier than it ever begins is a key duty for nonprofit accountants and their finance staff. The times of reacting to fraud after it occurs are behind us. Organizations must normalize speaking about fraud with a purpose to stop it from ever taking place to start with.
Implementing sturdy inner controls is likely one of the finest methods to forestall fraud at a corporation. In line with the New York State Workplace of the Legal professional Normal, normal inner management practices embrace:
- Utilizing common organization-level controls to watch who’s accessing monetary information and when;
- Implementing common guidelines in your technological answer to not permit errant events entry to monetary information;
- Segregating duties within the accounting division to create a system of checks and balances;
- Abiding by the Sarbanes-Oxley Act and creating an nameless tip line to report monetary mismanagement; and,Â
- Authorizing and monitoring customers that deal with buying and accounts payable.
Using software program that has built-in inner controls might help monitor consumer entry and supply audit trails, making fraud prevention easier. Cloud-based servers restrict entry for inner staff to guard who can entry your shopper’s information. Having sturdy inner controls deters information theft attributable to cyberattacks and fraud. Your group can set guidelines and monitor consumer permissions to entry particular functions, workflows or recordsdata. Safeguarding delicate monetary and proprietary information is essential for enterprise continuity and operational success.
Cloud computing gives infinite potential, however it’s worthwhile to guarantee your shopper is utilizing the correct answer. Correctly outfitted, cloud-based fund accounting options for nonprofit organizations function a number of layers of safety and encryption to make sure your shopper’s information stays secure and safe.
What differentiates cloud-based fund accounting options? Completely different distributors have totally different ranges of safety within the cloud. These safeguard safety layers would possibly embrace restricted consumer entry and permissions, encrypted information and communications, and SOC compliance endorsed by the AICPA and its Assertion on Requirements for Attestation Engagements (SSAE). Relating to monetary information, you need your shopper’s information in an atmosphere with a number of safety layers to forestall potential fraud or information breaches.
To fulfill the wants of distant and hybrid work preparations and keep away from volatility in enterprise operations, migrating to the cloud has turn into essential. On this period of distant work, being able to entry your shopper’s information wherever you’re is essential. Organizations that work in a cloud atmosphere have the chance to appreciate value financial savings, enhanced safety, accessibility for a hybrid or distant workforce, and the potential for higher audit controls with an answer that’s scalable. The long run is cloud computing, and because the workforce stays distant, your agency can trust in shifting to a cloud atmosphere.