With the amount of financial info you have to track, a spreadsheet is one of your most potent tools. But the more important (and complicated) a spreadsheet is, the more likely it is to have one of these major flaws. The good news: They’re all fixable. And those fixes can help you work more efficiently in the long run. Here’s what to look out for:

1. Hidden errors. No matter how well — or often — you check, a big complicated spreadsheet is bound to have some errors sneak in over time. And it’ll happen twice as fast if it’s a worksheet that multiple people have access to.  The fix: Periodically use one of the many programs that searches spreadsheets for cells that have missing formulas, broken links, references to empty cells, etc.
2. Too many chefs stirring the pot. There may be good reason for a dozen people to have access to see a spreadsheet — but chances are they don’t all need access to input data. Whenever possible, use Excel’s existing features (such as password-protection) to limit access to “read-only” for key files that need to be shared among many people.
3. Not knowing who did what. Even if access to input data into the worksheet is limited to only two trusted people, there may be times when it’s not clear which version of the spreadsheet is the last one. Make sure you have a system in place to track who made what changes and when. (For larger departments, software is available to handle this. For smaller companies, you may be able to get by with a solid naming/”save as” system.)

You think you have your bases covered for the next audit. But chances are your boss doesn’t have the same faith in you. That’s the learning from a recent survey by Deloitte. The company asked executives to rate their organizations based on how ready they are for audits or other “regulatory investigations.” Only 20% said they thought their troops were “very ready.”

Worse news for Accounting pros: 24% of execs said their companies are at a much greater risk for such an investigation than they were just a year ago. Given the economic climate — and people’s feelings about it — it seems certain that some companies are bound to get more scrutiny in the near future. And coming up short of good answers could lead to not only financial or legal action — it could leave your company with the proverbial egg on its  face.

How to get ready

One bright spot from the survey: 60% of company execs agreed that self-reporting results of internal audits could help identify problems while they’re still fixable and/or mitigate the damage from other investigations.

If you don’t already have self-audits scheduled, now’s the time to get the ball rolling. Even if you’re already sure your procedures and books are as tight as a drum, a successful self-audit can give you two other important benefits:

• proving to upper management that you are ready for the “real” audit, and
• finding errors, cash-drains and other ways to potentially save money down the road.

Tell us: Do you think your company’s ready for an audit or investigation? Is upper management’s skepticism warranted? Sound off in the comments.

And a surprisingly low 75% said they support zero-tolerance policies and/or strict discipline, including firing, after fraud is uncovered.

Prior research has shown that a tough response (or the threat of one) can not only deter potential fraud but also minimize the damage done. So it seems upper management’s reluctance to play hardball with internal fraud may actually make your job more difficult.

What do you think: Should companies take a zero-tolerance approach to fraud, or should everything be handled on a case-by-case basis? Share your thoughts and experiences in the comments.

The employee had purchased company stock through an employee purchase plan. Even though he later moved, he maintained the home address that he used for the stock purchase.

Nearly 20 years after he purchased the stock, without having heard from him, the company assumed it no longer had his correct address and escheated the funds to the state.

Normally companies get immunity from lawsuits once they transfer the property to the state. But in this case, the employee was able to prove the firm wasn’t entitled to immunity because it had his correct home address on file the entire time.

The case is still wending its way through the courts, so it’s too soon to say how much the company could be on the hook for. But between legal costs and a potentially large reward, chances are it’ll be costly.

What better reminder that the frustrating task of trying to contact each and every owner of unclaimed property is well worth doing — and worth doing well.

Here’s a three-step plan to “self-audit” your company’s own wireless charges to make sure you aren’t cutting checks for a penny more than you should be.

1. Consolidate. Allowing employees to use multiple carriers, giving phones to everyone in a given department, adding data plans to all phones regardless of whether the users need them — these are nice benefits for workers. But it makes your billing charges more complicated. And that makes it easier for overcharges and other errors to sneak through. Ask managers to look at who in their department needs these devices, and exactly what services they need. That move alone could slash your total wireless spending.
2. Set clear policies on usage. If a phone is for work use, it should technically be only for work use. (IRS considers non-work use of an employer-provided phone a taxable benefit.) It’s a rule a lot of employees — and employers — ignore. But it can have costly consequences. Not only will you be paying for more minutes in total. If auditors catch personal use being essentially subsidized by your company, it could become a major tax headache too.
3. Centralize. If multiple managers can sign off on phone and PDA expenses within their departments, you may not have a real idea of how much your company is spending. It also means you’re probably not getting the kind of volume discounts you’re entitled to. Having one central person go over all the bills also gives you a chance to see if there are any duplicate charges or unused services that your company is being invoiced for.

How do you manage payments for your company’s phone and wireless charges? Share your best practices in the comments.

Setting limits is a good idea because it reduces the chances of employees “accidentally” overspending or submitting receipts for expenses that shouldn’t be reimbursed. Without a policy in place, employees tend to rely on the excuse: “If it doesn’t say I can’t, I guess that means I can.”

And there’s no better time than now to take a second look at T&E expenses. With most companies looking to tighten their belts during the economic downturn, travel expenses are a ripe target for cost-cutting.

Some A/P departments ask for updated W-9s each year. That’s great if you have the time, but it does mean spending some time on tasks that don’t need to be done. 

Bear in mind: W-9s are good indefinitely, so if there’s no reason to believe a vendor’s information is out of date, you don’t need a new W-9. 

Best practice: Instead of hounding every vendor for a new W-9 (or even confirming the info) you may want to limit your efforts to companies who throw up a yellow flag that they may need a new form. Some of the signs:

• moving to a new location
• mergers or acquisitions (some merged companies take on the buying company’s TIN)
• a change in ownership (may indicate that a company is now a corporation).

The only time you have to get a new W-9 is if IRS sends a B-notice for a vendor.

What’s your take? Is it worth to get new W-9s (or their equivalent) from vendors each year? Or does it take more time than it saves? Let us know in the comments.

The right vendor will help you narrow your options so you get all the functionality you need without adding services you don’t need — and which cost more.

With that in mind, here are four questions to ask potential vendors when you’re shopping for a program:

1. How much support do you offer once the program is set up? Ideally, you’ll want access to a dedicated rep who can answer your questions. Depending on how complicated your program is and what new software you may be adding, it may be a good idea to have scheduled training sessions with someone from the card issuer. If that’s the case, make sure the training is done efficiently (no drawn out multi-day programs) and that it’s not a separate charge.
2. How much paper/time/money will this actually save us? If parts of the process (like handling receipts and P.O.s) are still manual, or will require printing out documentation, you may not be getting as much benefit as it seems. Get a detailed estimate of how much time and money you’ll be saving with the proposed system. And then figure out how long it’ll take for those savings to recoup your upfront expenses.
3. Does your program address our biggest headache? If T&E is where most of your paperwork roadblocks develop, a standard p-card program probably won’t suit you as well as a travel-specific card. Make sure potential vendors know what your top concern is — and that their programs are adapted to meet those needs.
4. How secure is our info? No financial transaction should even be considered until you have solid answers about how secure all the electronically based info really is.

If you’ve already been down this road, what questions are you glad you asked your vendor — or wish in hindsight you had? Share your perspective in the comments.

Whether your company’s bank is one of the big nationals or a small regional one, the financial crisis they face is bad news for your Accounting processes. You can’t open a newspaper without hearing about another bank laying off workers and watching its stock price drop another 5%. That bad news isn’t limited to those directly impacted. All the changes banks and related finance companies are going through right now will have a real effect on how you interact with your own bank.

Smart Money identified three trouble areas you’ll want to keep an eye on — and ways to make sure you can minimize their disruption in Accounting:

1. Increased fees – Banks are hurting and to make up lost revenue, you can expect them to add new fees and hike existing ones. Worse, because several foundering banks — large and small — have been bought up by those that remain, there’s less competition for your business. So if you do face onerous hikes your company will have less leverage to negotiate a better deal with either your current bank or another. Action step: Review procedures to see if any small changes can help you minimize the effect of higher fees. One example: Eliminating a check run a month by switching to direct deposit for employee reimbursements.
2. More scam attempts – Disgruntled ex-employees, cash-strapped workers and plain-old-fashioned desperate con artists are likely to increase their attempts to part your company and its hard-earned money. Most banks are reporting an increase in the number of cases of phishing attempts. There are also reports that more confidential account info has leaked. Action step: Most scams can be prevented with procedures you already have in place. More than ever, it’s time to be vigilant. Make sure any relevant staffers (in or out of Accounting) know the red flags — and how to handle them.
3. Reduced security — Having laid off staff and outsourced some important functions like IT, bank security isn’t at its strongest right now. Action step: There’s not much you can do to clean up your bank’s procedures. But you can be extra careful when reviewing account statements. Reconcile statements at the first chance you get. If the worst happens and you are a victim of fraud, getting an early jump on it is the best way to ensure you not only nip it in the bud, but also get your money back.

Who couldn’t use an extra pair of hands when you’re getting ready for year-end? Of course, needing help doesn’t always mean you get it. Still, even if you don’t have the budget to hire a temp, let alone full-time help, that doesn’t mean you can’t find someone to give your department a boost with the heavy lifting. 

Use this time now — before the worst of year-end hits — to cross-train people throughout your department. All it takes is some creative thinking and a little flexibility. 

Best of all: It doesn’t require learning entire new areas of tax law or IRS requirements. All it really boils down to is communication and balancing each others’ schedules. 

An A/P clerk who’s already finished her 1099s can easily help Payroll double-check W-2s before they mail. Does Receivables have a little extra this week? Ask them to help out with filing last year’s invoices and POs.  Even people in other departments can lend a hand. For example, maybe the receptionist can make vendor TIN follow-up calls during lulls in the day. (Just make it clear that you’re willing to offer similar aid in the future. And a “thank you” memo CC’d to your helper’s boss is a must.)

With just a little give-and-take everyone in Accounting can ease their own workload and really eliminate stress. 

Bonus: Far from adding more work to your plate, the chance to stretch your mental muscles, learn something new and interact with folks you normally don’t can boost morale. 

Who knows? A fresh pair of eyes observing your processes may even help you come up with some ways to streamline processes throughout the rest of the year.