Internal Control Tips
Updated: Mar 18
Even though you will always seek to hire honest employees for your business, it is still very important to implement internal controls within your company. Internal controls are the policies and procedures that your company follows to make sure that no accidental or purposeful fraud happens within your business. Even if these controls seem redundant or unnecessary, trust us—they’re necessary.
Here are a few tips to get you started on building internal controls within your company:
1. Use the buddy system: In all the financial procedures of your company, make sure that at least two employees work together and monitor each other’s handling of the finances. This will help to ensure that an individual does not even have the opportunity to corrupt the finances (by accident or intent).
2. Keep a record: All your finances should be kept on record. This will help you to watch your expenditures, but it will also help you to quickly recognize any fraud within your company. Don’t become lax on keeping record. It will be vital to your company’s success.
3. If you do have contributors: Make sure to make record of their contributions and then send them appropriate thank-you letters to ensure that they know you received their contribution. This will help you and the contributors to always be sure that the funds have been properly received and deposited.
These are just a few tips on internal controls provided to you by Fair, Anderson & Langerman, local experts in bookkeeping services in Las Vegas, Nevada.