Accounting audit trails key to managing risk

Consistently reliable systems with proper accounting audit trails go a long way in mitigating risk, says Compu-Clearing’s Jessica Schneiderman. “It is not just about having any system in place. The system must have proper accounting audit trails so that when required, a proper back trail of all transactions can be shown.” User access control is another feature that helps – not only should you be able to block users from accessing areas of the system from which they should be restricted, you should also be able to track user activity. Says Schneiderman: “The ability of a system to track debtors’ control limits is another essential area relating to risk management. The Compu-Clearing system will suspend the BoE and not allow it to be submitted to Customs via EDI if a client is beyond their credit limit. The reason for this is that the agents themselves will be liable to pay the duties to Customs if for example the importer can’t pay their duties. Our credit control solution works on a national level so clients can have a shared credit limit across all branches. The credit limit includes duties of uncleared entries to assist in managing your risk by calculating your exposure.” Along with this, a system must validate data as this helps to reduce user errors. “A good system is not only about the software but also about the service provider. It is important to use service providers with proven track records that you can rely on and believe in. “Service providers should provide guarantees and 24/7, 365 days of support as well as disaster recovery management to ensure business continuity. You must have back-up plans in place at all times so that when disaster strikes, you are ready.” Schneiderman believes that one of the biggest challenges relating to risk in the clearing and forwarding industry is the high degree of change. “For example, Customs regulations and tariff evaluations are constantly changing. It is essential to ensure that you have a service provider who always keeps up to date with the latest changes.” The company offers full guarantees against penalties and even against consequential losses, she added. “If an entry comes out wrong and there is a penalty, we will pick up the penalty – and if there is no penalty but there is a consequential loss, such as storage or demurrage, we will pick up that cost as well. We also guarantee our software, public information data for duty rates, permit requirements and exchange rates. We guarantee that the Customs computer will accept the entry. Instead of offering a one-size-fits-all solution, we work hand in hand with our customers to develop tailormade solutions that meet their unique requirements.” INSERT & CAPTION If an entry comes out wrong and there is a penalty, we will pick up the penalty. – Jessica Schneiderman