Are Poor Financial Controls Costing You Money? Take the Consero Performance Assessment

Updated: March 12, 2025

Poor financial controls can create significant waste, fraud, or decreased credit rating – yet it happens to thousands of businesses every year.  A sound internal control environment is the foundation from which a corporate finance function can be relied upon to protect and report on the company’s cash and general financial position.

Unfortunately, many high growth companies have completely inadequate controls due to the perceived expense and skill-set required to establish a strong internal control environment properly, leaving them exposed to several risks including:

  • Lost revenue
  • Over-payments
  • Wasted spending
  • Internal fraud
  • Unavailability of credit

Improper controls in any of the different areas of the finance function can lead to the issues above. These include:

  1. Mistakes in the invoicing process (over billing, under billing or unclear billing) can cost the company money and/ or damage the company’s credibility stance in the marketplace with customers.
  2. Errors in the payment process (late payments, missed payments or over-payments) can damage a company’s credit rating, can cause business disruptions through vendor credit holds or cost the company money as many vendors are not going to return cash that was overpaid to them.
  3. Lack of controls in the cash payment process or general accounting area open the company up to fraud that would be difficult to detect see.
  4. Incorrect or incomplete financial reports can adversely affect business decision making and can lead to the inability to get obtain financing, or to increased audit costs.

Take the Consero Financial Performance Assessment

Here are 11 questions executives must ask to improve financial controls.

Invoicing

  1. Do I have an invoicing process that I am confident yields consistently accurate invoices to clients?
  2. Do I have the ability to automatically verify that ALL billable expenses (time, materials, sub- contractors, etc.) were passed back through to clients?
  3. Are my revenue recognition practices compliant with US GAAP?

Accounts Payable

  1. Does my current process ensure that invoices are received and can be tracked through all the way to payment?
  2. Do I have a purchase requisition process to ensure that all material payments of any significance to be pre-approved?
  3. Do I have separation of duties so that no one person in my accounting function can: create a vendor; setup a payment to a vendor; initiate/authorize a payment to a vendor?
  4. Does my accounting system prevent entries from being deleted after a check was printed or a payment generated?

General Accounting and Reporting

  1. Are bank reconciliations done each month to verify that the accounting system accurately reflects bank account activity?
  2. Are the people doing bank reconciliations separate from the people who have the ability to generate payments?
  3. While all companies like to think things won’t happen to them, if you can answer “No” to any of the questions above, you are likely exposed to the risks outlined at the beginning of this note.
  4. Contrary to common perceptions, proper financial controls for small and mid-market companies do not have to be expensive to implement and can have an extremely positive ROI in savings…not to mention peace of mind.

Related Resources

Case Study

The Keys to CFO success: Saving Time, Insightful Information, Transparency, and Scalability

Superstar CFO: Consero Helped Clear the Way By any measure, Robert Alvarez, CFO of BigCommerce.com, is a superstar. Robert and his team have helped BigCommerce.com ...
Events and WebinarsNonprofit

2025 Nonprofit Leader Report [Webinar]

Nonprofit leaders share their top challenges today. Learn how BTQ Financial works with nonprofits to turn challenges into opportunities.
Three men meeting around laptop in business setting
ArticleTalent

Five ways to reduce turnover in the finance department

According to Consero’s 2024 data, attracting and retaining talent are one of the top challenges for investor-backed CFOs. Employee turnover is natural for any business, ...
Consero webinar title card, top considerations when rolling out an ERP
Accounting SoftwareAccounting Software

6 ERP Implementation Best Practices + Considerations [2025 Webinar]

A complete guide on how to select an ERP implementation partner, avoid common pitfalls, and plan a successful roll-out step-by-step.
Two pairs of hands going over a calculation
ArticleFinance as a Service

Finance as a Service (FaaS) vs. In-House Finance Department

FaaS offers a disruptive alternative to building an in-house finance team.
Insurity case study title card
Case StudyFinance as a Service

How Insurity Integrated 3 Rollups En Route to a Profitable Exit

Consero's FaaS solution saved Insurity 37% on the finance function, improving enterprise value upon successful exit.

Finance as a Service

Cutting edge technology, processes, and people in a fully-managed solution to deliver precise financial visibility and improved operational scalability, plus a lower and more predictable cost structure. 

Flex Finance

Keep your existing technology and processes. We can manage the back-office F&A function from end-to-end process, including closing the books. When you need skilled talent, we can supplement your F&A team.

Advisory Services

Expert advice and strategies to help you grow.

• CFO Advisory Services
• FP&A and Reporting
• Technical Accounting & Clean-Up

Consero FaaS: Disrupting the Outdated Traditional F&A Model

Transformation
  • Cash to GAAP conversion
  • Clean-up work
  • Interim oversight & support
  • Accounting software Implementation

Build it Yourself Solution

  • CFO / Interim CFO
  • Consultants / VARs

Consero FaaS Solution

  • CFO / Interim CFO
  • or Consero Interim CFO
  • Consero Setup/Transformation
Ongoing F&A
  • Monthly financials
  • Daily accounting support
  • Management reporting
  • Integrate add-on acquisitions

Build it Yourself Solution

  • CFO
  • Controllers & Accounting Team
  • Enterprise Accounting Applications

Consero FaaS Solution

  • CFO
  • or Consero Fractional CFO
  • Consero FaaS Enterprise F&A Software and Services

New PE Platform Investment F&A Challenges

Founder Owned Company Accounting:
  • Existing accounting done on a cash/hybrid basis
  • Run on SMB accounting software and other disparate applications
  • Inability to produce auditable financials
  • Lack of know-how to develop projections & KPIs
  • No consistency/structure to customer contracts
  • Underqualified staff
  • Non-scalable manual processes
Carve-Out Accounting:
  • Required to move off parent company accounting applications in a timely fashion
  • Have to build an entire F&A team
  • No documented operational policies and procedures
To Optimized Finance & Accounting:
  • Monthly financials available in 5-10 business days
  • Audit and diligence ready support details
  • Integrated enterprise grade accounting software
  • Budget and forecast reporting
  • Business KPIs
  • Efficient & scalable processes for rolling in add-ons