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How Do You Ensure Compliance With New Financial Controls?

How Do You Ensure Compliance With New Financial Controls?

Navigating the maze of new financial controls can be daunting, but with expert insights, compliance becomes a manageable task. This article dissects the complexities of financial regulations and provides clear guidance from seasoned professionals. Discover the key strategies to maintain compliance and enhance your organization's financial integrity.

  • Ensure Accountability, Monitoring, and Adaptability
  • Use Interactive Training with Real-World Examples
  • Combine Automation with Human Oversight
  • Establish a Robust Internal Audit Function
  • Prioritize Training, Automation, and Audits
  • Combine Automated Checks with Manual Testing
  • Maintain Consistency and Visibility
  • Build Compliance into Everyday Operations
  • Maintain Detailed Documentation and Regular Check-Ins
  • Involve Stakeholders and Create a Compliance Culture
  • Use Thorough Documentation for Financial Compliance
  • Focus on Documentation, Training, and Monitoring

Ensure Accountability, Monitoring, and Adaptability

Ensuring compliance with financial controls being implemented into organizations relies on accountability, monitoring, and adaptability. Accountability comes from the policies and procedures that organizations implement to meet their regulatory responsibilities; monitoring involves the method utilized to find instances where policies and procedures are not followed; and adaptability refers to the ability of organizations to update their methods to become more efficient, proficient, and compliant.

An example can include an organization updating its policies and procedures relating to transaction monitoring and implementing training sessions for their staff from the management and quality assurance side down to the operational side of investigators and analysts. Through this implementation, a feedback loop can be developed which includes testing the efficiency and compliance of the newly implemented policies and procedures. And finally, these policies and procedures can be adapted based on the feedback and testing of this new implementation. In this way, an organization can ensure compliance with financial controls that are being implemented.

Mohit Gogna
Mohit GognaPrincipal Consultant, Platino Consulting

Use Interactive Training with Real-World Examples

As a finance website founder, I've found that monthly training sessions with real-world examples work better than dry policy reviews. Last month, we walked our team through a potential fraud scenario, which helped them spot and prevent a suspicious transaction attempt the following week. I recommend using interactive tools and case studies during training, then following up with quick weekly check-ins to address any questions or concerns that come up.

Combine Automation with Human Oversight

In running Taxfluence, I've learned that automated compliance checks catch about 90% of issues, but it's the human oversight that matters most for that crucial last 10%. We implemented a buddy system where team members cross-check each other's work weekly, which has reduced our error rate significantly. I suggest starting with basic automation tools, but don't forget to build in regular peer reviews - they've saved us from several potential compliance headaches.

Establish a Robust Internal Audit Function

As a Chief Financial Officer, ensuring compliance with financial controls within an organization is pivotal to maintaining financial integrity and adherence to regulatory standards. One effective strategy that I've employed is the establishment of a robust internal audit function that operates independently of the finance team.

The internal audit function plays a critical role in assessing the effectiveness of financial controls and the accuracy of financial reporting. By conducting regular and thorough audits, this team helps identify any deviations from established controls or instances of non-compliance. This proactive approach allows for immediate corrective actions, preventing minor issues from escalating into significant problems.

For example, in my current organization, we implemented a quarterly audit cycle where the internal audit team reviews all financial processes and controls. They cross-verify transaction samples, check compliance with the documented financial procedures, and ensure that all financial decisions are properly authorized as per the company's delegation of authority matrix. The findings from these audits are reported directly to the audit committee of the board, ensuring transparency and accountability.

Additionally, to support the compliance efforts, we utilize specialized compliance software that automates the tracking of compliance with financial regulations and internal policies. This software sends alerts for non-compliance issues and helps in maintaining a clear audit trail, which is invaluable during external audits or regulatory reviews.

Connor McDougall
Connor McDougallChief Operating Financial Officer, MapleWorthy

Prioritize Training, Automation, and Audits

Ensuring compliance with financial controls within an organization is crucial for maintaining financial integrity and adhering to regulatory standards. My approach involves several key steps to ensure that the controls are not only implemented but also consistently followed. Firstly, I prioritize clear communication and comprehensive training. When new controls are introduced, I hold training sessions for all relevant staff members to explain the importance of these controls, how they function, and the consequences of non-compliance. This education phase is essential for fostering a compliance culture and ensuring that everyone understands their role in the process. Secondly, I implement automated systems where possible to reduce human error and increase efficiency. For example, using software that automatically flags transactions that do not comply with set parameters can help in early detection and correction of deviations from established financial practices. Furthermore, I establish regular audits and checks. This involves both internal and external audits. Internally, we conduct surprise audits and regular reviews of financial activities to ensure adherence to the controls. Externally, hiring independent auditors to review our compliance not only provides an objective assessment but also helps in identifying any weaknesses in our control systems. Another critical element is creating a transparent reporting mechanism. This allows team members to report any issues or non-compliance they observe without fear of reprisal. Encouraging an open environment where employees feel safe to report discrepancies is fundamental to effective compliance. Lastly, I ensure that there are clear consequences for non-compliance, which are applied consistently. It's important that all staff see that breaches are taken seriously and that the organization maintains a high standard of financial conduct. By combining education, automation, regular auditing, transparent reporting, and strict enforcement of consequences, I work to ensure that financial controls are respected and integrated into the daily operations of the organization. This comprehensive approach helps in maintaining not just compliance but also a robust financial governance framework.

Emily Tran
Emily TranFinance Analyst and Management Specialist, Maple Worthy

Combine Automated Checks with Manual Testing

Control monitoring combines automated system checks with regular manual testing. Modern accounting software flags unusual activities, while periodic internal audits and transaction reviews verify control effectiveness. Maintaining comprehensive documentation of procedures and audit trails supports consistent control implementation and helps track compliance.

Regular staff training, as well as clear communication channels, are vital. Employees must understand not just the "how" but also the "why" of controls, allowing them to follow protocols accordingly and report suspected violations. Updates on new procedures and refresher sessions on the existing ones form part of such training.

Systems need periodic review to be relevant. Controls should change with evolving operations and technology while still being protective. Systematic reviews detect weaknesses and points of improvement; controls will stay effective and efficient without creating unwanted operational friction.

Maintain Consistency and Visibility

When it comes to ensuring compliance with financial controls, the key is consistency and visibility. First, we establish clear policies that outline every step of the financial process, from budgeting to reporting making sure they are simple enough for everyone to follow but thorough enough to meet regulatory standards. I then focus on frequent training sessions to keep everyone updated on best practices and potential changes in regulations, making compliance a part of the company culture.

Technology plays a huge role in making this scalable. We use financial management tools that integrate with our systems, allowing real-time tracking of all financial activities. This helps spot irregularities or issues immediately before they escalate. Additionally, I implement regular internal audits and set up a system for peer reviews, ensuring checks and balances are always in place. By empowering my team to stay proactive and informed, we not only comply with financial controls but also strengthen our financial integrity across the board.

Samantha Odo
Samantha OdoReal Estate Sales Representative & Montreal Division Manager, Precondo

Build Compliance into Everyday Operations

From my banking days at Sparda to my current role at Spectup, I've learned that effective financial controls need both structure and flexibility. During my time at N26, I saw firsthand how crucial it was to build compliance into everyday operations rather than treating it as an afterthought. At Spectup, we've implemented a three-layer review system for all financial transactions, something I picked up during my time at Deloitte. We hold weekly financial review meetings where our team goes through all major transactions, ensuring everything aligns with our compliance framework.

One practice that's worked particularly well is having clear documentation requirements for every financial decision—a lesson I brought from my banking operations experience. I also make sure everyone on the team understands not just what the controls are, but why they matter—this understanding helps prevent compliance from feeling like just another bureaucratic hurdle. Regular training sessions and updates keep everyone informed about any changes in financial regulations or internal policies.

Niclas Schlopsna
Niclas SchlopsnaManaging Consultant and CEO, spectup

Maintain Detailed Documentation and Regular Check-Ins

I learned the hard way that robust documentation is crucial after a minor reporting hiccup last year, so now I maintain detailed spreadsheets tracking every financial control checkpoint and who's responsible for each step. I also set up monthly check-ins with our compliance team where we review any red flags in our processes and brainstorm improvements, which has helped us catch potential issues before they become problems.

Cameron Rose
Cameron RoseSEO Manager, YCharts

Involve Stakeholders and Create a Compliance Culture

When implementing financial controls in my organization, ensuring compliance has always been a top priority. I remember when we first rolled out a new expense approval process. It was a bit of a shift for the team, so I knew I had to approach it carefully. Instead of just setting the rules and hoping everyone would follow them, I made sure to get buy-in by involving key stakeholders early on.

We hosted a few training sessions to walk everyone through the process, explaining not just the "what" but also the "why" behind the controls. I wanted everyone to understand how these measures were protecting the company and ensuring we met regulatory requirements. Then, I set up a system of checks and balances, where each step in the approval process required multiple levels of oversight.

To keep things running smoothly, I also built in regular audits and reviews, encouraging team members to ask questions whenever they were unsure about something. Over time, compliance became second nature, and we saw a noticeable reduction in errors and a stronger sense of accountability across the team. It wasn't just about enforcing rules—it was about creating a culture of transparency and trust.

Use Thorough Documentation for Financial Compliance

Working with government contracts, I've learned that thorough documentation is absolutely critical for financial compliance. When we started GSA Focus, I created a simple checklist system that every team member uses to track each financial step, and it's caught countless small issues before they became big problems. While it might seem tedious, I've found that taking photos of receipts immediately and using a shared digital filing system has saved us countless hours during audits.

Focus on Documentation, Training, and Monitoring

To ensure compliance with financial controls, we focus on three key areas: clear documentation, regular training, and consistent monitoring. First, we develop detailed policies and procedures for each control, such as expense approvals or segregation of duties, and make them accessible to all relevant team members. Next, we conduct training sessions to explain the importance of these controls and how to follow them effectively.

For example, when implementing a new purchasing approval workflow, we introduced training for employees on the system and ran audits during the first three months to identify gaps. Continuous monitoring, supported by automated alerts in our financial software, ensures adherence over time. Combining clarity, education, and oversight fosters accountability and prevents lapses.

Blake Beesley
Blake BeesleyOperations and Technology Manager, Pacific Plumbing Systems

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