Financial Shortfalls and Fraud Management: Report and Analysis

This report delves into the critical aspects of financial management, focusing on the strategies to address financial shortfalls and detect fraudulent activities. The report examines various techniques for managing financial shortfalls, including prioritizing expenditures, utilizing virement, establishing reserve funds, and exploring alternative external income sources. It emphasizes the importance of these measures and their implications for individuals within a service. Furthermore, the report outlines the actions to be taken in the event of suspected fraud, focusing on the analysis of financial information for reliability, validity, and sufficiency, as well as the importance of reporting and providing evidence of fraud. The report concludes by highlighting the necessity of proper resource allocation and the generation of detailed reports for effective financial control.

MANAGING FINANCIAL
RESOURCES

INTRODUCTION
To manage financial resources in an organisation, it is essentially
required that professionals must consider several terms which bring proper
control over financial resources. There is need to consider the availability of
resources such as material, funds, labour and hours which are required to be
managed in a cost efficient manner. Main motive of accounting professionals is
to manage the funds and expenses of organisation.

MANAGEMENT OF FINANCIAL
SHORTFALLS
To manage financial shortfalls in an organisation, there are various techniques
which will be best funnelling tactic for accounting professionals such as:
Priorities: The main priorities of a corporation is to make payments of necessary
activities such as staff salaries, purchasing material, inventory management, fuel
expenses, repairs and maintenance, etc. It ensures that the business must invest
initial amount over required activities.

Cont...
Virement: To monitor the financial transactions, this is the technique on
which amount of funds will be transferred from one account to another.
Similarly, firm makes budget for the year on which they perform their
operational activities. Thus, the amount of budgets reflect variance which will be
used for another activity such as funds will be transferred to other account.

Cont...
Reserve funds: These are savings which were made by professionals in relation
with managing funds for the future. These are mainly the operating funds,
insurance payments, etc. to manage such balances which will bring financial
security to firm.
Alternative external income: This is the income which a firm gathered from
outside activities. Thus, these are expected from sale of products and services
which will be conversely different from the internal income consideration.

Cont...
Sources: To analyse availability sources for gathering, the most appropriate
and adequate funds in operating business activities. The main sources are
investors, governmental grants, owner's equity and various other resources.
Implication for individual within service: There is need to implicate the
individual within work operations of entity.

ACTIONS AGAINST THE EVENT OF
SUSPECTED FRAUD
To determine and allocate the fraud in entity, there is need to make proper analysis
over transactional activities and monitor inflows and outflows of funds. However,
there are several techniques which will be helpful in detecting the fraud within
work such as:
It is essentially required that the business must execute reliability and validity of
financial transactions.
All records and outcomes must meet the sufficiency and accuracy level.

CONCLUSION
To execute and manage the financial activities for an organisation there is
need to allocate the availability of resources as well as proper management of
outflows. There must be concrete evidence which brings the accurate outcomes.
Moreover, it will be fruitful, if the professionals prepare separate reports for each
unit on daily basis.

REFERENCES
Books and Journals
Rothenberg, S., Hull, C. E. and Tang, Z., 2017. The impact of human resource
management on corporate social performance strengths and concerns. Business &
Society. 56(3). pp.391-418.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management:
toward implementing an evolving marketing concept. Journal of the Academy of
Marketing Science. 45(3). pp.377-401.
Online
Source of Income - Personal Service Income. 2018. [Online]. Available through:
<https://www.irs.gov/individuals/international-taxpayers/source-of-income-
personal-service-income>.

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