CFO For 10+ Years, MBA from Columbia & Programmer
I’m Doug Schiller. I have decades of experience as a CFO at several technology companies, and worked with CPAs and developers all over the world.
As CFO, there were many times when I was frustrated by preparing for and conducting due diligence.
The first place to look should always be the bank statements. Professionals randomly check the entries, and he never felt confident that this method was sufficient.
I knew it should not be so hard. But I couldn’t find a product to do that. So, I developed one.
I’ve found major problems every time I did the complete rec. This reveals that bookkeepers take shortcuts that make it hard to reconcile. In some cases, it has revealed fraud concerns and even real frauds.
But even when this process does not find fraud, it has some real benefits. Before showing bank recs and statements to auditors, I’m certain they are perfect. That builds trust.
When a controller knows that their bank recs will be thoroughly reviewed, line-by-line, it makes them do a better job (fewer shortcuts) and, of course, reduces the risk of fraud.