AB Financial Group highly values and firmly endorses a comprehensive commitment to financial accounting ethics for every business. The noble side of business management, accounting ethics serve to distinguish a company via its unwavering commitment to financial accounting precision. Ethics operate as guardrails to establish and maintain a reputation of honesty, integrity, accuracy and premium marketplace citizenship. Internalizing a code of ethics is foundational to a business’s success. Values to consider:
Financial ethics assert the necessity of 100% accuracy in all accounting practices. Accuracy is essential in order to establish and maintain a relationship of trust with all stakeholders: customers, partners, investors, financiers, and employees. As such, the requirement for professional competency from each finance accounting contributor must be exemplary. A fluency with accounting standards is baseline. A comprehensive understanding of the how-to in executing accounting tasks, and a highly proficient attention to detail serve to undergird the overall fluency and precision of an organization’s financial data.
A business management team is charged with ensuring the exemplary competence of each contributor to financial accounting data. Responsibility starts at the top. AB Financial Group has the expertise and experience to partner with your management team to establish an exemplary level of competence within your financial accounting systems. Let us show you how.
Information security is maintained within the safety of accounting ethics. Exemplary competence and an unwavering commitment to confidentiality create and maintain a hardline of protection around a company’s financial data. This wall of protection is not only found within the ethical behavior of accounting contributors, but within the physical hardware, archive protocols including back-up records, as well as the entire cyber universe connected with an organization. Ethically strict information security and confidentiality prevent several negative impacts including:
- Fraud, internal and external
- Negative publicity
- Identity and intellectual property theft
- Potential defamation of the entity, management, or employees
- Ransomware challenges
- Unwelcome acquisition efforts
AB Financial Group offers the guidance a business requires to establish and maintain ethical information security.
Standards and Integrity
The ethical practices of an organization are correlated to its commitment to integrity and honesty in accounting standards. Probity is essential to a company’s marketplace reputation. Fluency with financial accounting standards will include these areas of responsibility:
Principles – It is accepted that a business will operate with fluency within the principles governing its sector. One example is the 10 Generally Accepted Accounting Practices (GAAP). These principles define agreed upon accurate and impartial reporting processes, adherence to industry standards, full disclosure with impartiality, utmost honesty, prudence, among others. AB Financial Group works with organizations to master all principles.
Regulations – Every US business is subject to applicable federal, state and local regulations. An example is the Financial Accounting Standards Board (FASB), a broadly recognized set of standards for accounting ethics. Accurate visibility into the financial operation, practices and valuation of an entity are the goals of regulation. Private-sector, publicly traded and not-for-profit organizations benefit from the ethical application of regulatory standards by reflecting commitment to utmost accuracy in all financial reporting.
Industry wide compliance – Businesses within each industry often submit to the generally accepted set of financial accounting standards for the given sector. This cohesion across an industry is such that published accounting data is generated within the same set of standards allowing for equivalent comparison between like entities. Association examples include the National Association of Mutual Insurance Companies (NAMIC), and its related, International Association of Insurance Supervisors (IAIS), which govern the insurance sector respectively.
AB Financial Group partners with businesses to identify and implement the appropriate accounting standards such that financial ethics are built into the organization’s reputation. Contact us to learn more.
The accounting function of an organization must be committed to objectivity and independence. Financial data must speak for itself, without compromise to tone, truth and integrity. It is a basic fiduciary responsibility to act in the best interest of the business. This is not simply maximizing the bottom line, but protecting and maintaining the company’s high-standing within the business community. Both goals are equally important for long-term success. AB Financial Group offers a fiduciary responsibility check-up for enterprises interested in ensuring a valuable long-term reputation.
Personal Conduct and Reputation
Probity within the office environment is, of necessity, bolstered and verified by an equal measure of integrity and professional comportment outside of the work environment. The holistic reputation of those charged with the execution of authentic and accurate financial data requires a high degree of personal responsibility in the community at large. It’s good business. Avoid the pitfalls to securing a good reputation. A sober demeanor, lawful behavior, and avoiding risky activity such as gamboling all speak to a trustworthy character. An unwavering commitment to honesty and truth reflect directly on the financial information produced. Great citizenship within the community is good for marketplace citizenship.
Preventing and Addressing Unethical Actions
Standard operational procedures must be in place for the purpose of both preventing unethical practices, and rapidly reversing any unethical behavior.
Prevent ethics lapses Awareness of common breaches in business accounting ethics is the start to preventing unethical practices. An organization must recognize its vulnerabilities and design systems to close the gaps. Consider these:
- Falsifying information in expenses, statements, revenue, taxes, etc.
- Internal theft, embezzlement and misappropriation
- Inappropriate audit practices
- Confidentiality breaches
- Inadequate cyber security
- Fake licensure and employee credentials
- Gray area practices
Clear, comprehensive and concise operational procedures, supported by stated intent, should be developed, utilized and modified as needed to ensure ethical standards are maintained.
- Manage ethics breakdowns – Recovery from unethical behavior in business falls into two categories: what to do before it occurs, and what to do following an event.
- Hire wisely – Select candidates that reflect the morals and values of the organization.
- Promote a code of conduct – Put it in writing. Explicit expectations are easier to maintain and follow
- Utilize overt security controls – embrace and promote security and surveillance systems such that everyone recognizes the level of visibility
- Use consequences effectively – Maintain the two goals of an effective consequence; make it appropriate and timely
- Insure against loss – Employee Loss Insurance can protect against employee unethical behavior
- Maintain a culture of loyalty – consistently work on employee morale and a culture-wide affinity to leadership.
- Promote accountability – Ensure employees recognize their personal accountability for actions, including negative consequences, if necessary
Accounting ethics represent the very highest in noble contributions in business, and add great value to the marketplace at large. AB Financial Group is available to assist in any area of ethical accounting practices your organization may require. Contact AB Financial Group today. Our main number is (970) 444-5686, for offices in Edwards, Denver and Colorado Springs.