Filomeno & Company Turns Audits into Profit Centers

WEST HARTFORD, Conn., Nov. 10, 2010 /PRNewswire/ -- Filomeno & Company, a proactive CPA and business advisory firm, turns financial audits into profit centers.

"Our approach gets folks thinking about the audit process differently," said George Thomson, Director of Accounting and Auditing Services for Filomeno & Company.  "It has a negative connotation for many, but an annual financial audit can be a great resource to learn where your business can improve by leveraging the analytics and benchmarking completed by your auditors."

Filomeno & Company helps their clients use their audit as a tool to show them the efficiency and effectiveness of their internal processes and how they benchmark compare against their peers in the industry.  Filomeno & Company does this by understanding the company's liquidity, margins, borrowing and assets.

Taking a good look at the aging of accounts receivable is a good example, Thomson said.  He and his team calculate the average amount of time it takes the client to collect payment.

"If we find that a business we are working with has an average number of 90 days, but the industry average is 45, then we can recommend a plan of action to remedy the situation," he said.

Oftentimes, businesses may be using a line of credit to fund accounts receivable, which can amount to substantial interest expense over a period of time.  In this instance, Filomeno & Company might recommend that the business require credit card payments, since it may be more affordable to pay the merchant fee than rack-up interest charges.

"This action can have a domino effect for savings," said Thomson.  "If cash flow is good, then the company may be able to save money by taking advantage of opportunities from vendors that offer discounts for early payment."

As Thomson and his team move through the audit process many issues are uncovered that reveal opportunities for streamlining that can save clients a lot of time and money as well.

In addition to opportunities to streamline processes, Filomeno & Company also works with clients to maintain the integrity of internal controls to ensure that proper checks and balances are in place.

Auditors are required to understand their client's internal checks and balances.  Small or middle market businesses typically don't have enough internal resources and too many overlapping responsibilities are handled by one bookkeeper, which does not lead to the proper segregation of duties and could put businesses at risk.  Filomeno & Company works with their audit clients to devise a system that includes internal controls - most often without having to add new employees or burden to existing staff.

"These are just a few examples of the many things we can bring to light for companies to help them boost their bottom line," Thomson said.  "Every client we work with gets a management letter at the end of the audit that clearly outlines where they can improve and offers suggestions that range from the mundane to the highly sophisticated."

For more information about how to turn your audit into a profit center, contact Filomeno & Company at 860.561.0020 or visit www.filomeno.com

About Filomeno & Company

Filomeno & Company is a proactive business advisory firm offering a wide range of services including: accounting & auditing, business advisory, business valuations, corporate tax, individual tax or strategic tax, qualified plans and fraud prevention.  Located in West Hartford, CT, the company's mission is to passionately serve our clients, our community, our firm and each other.  For more information, contact Filomeno & Company at 860.561.0020 or visit www.filomeno.com.

Press Contact: Jessica Lyon [email protected] 860.676.4400  

SOURCE Filomeno & Company