Keep an eye
on your company's cash
Do you
regularly monitor your company's cash accounts? Being aware of where your cash
is going can help prevent theft or improper expenditures, which are among the
chief sources of loss for small companies.
What can you
do to reduce the risk of losses? The textbook answer is to implement "internal
controls." Internal controls are standard procedures for assuring the
integrity of your financial processes. For example, segregation of duties, such
as having more than one person involved in preparing, signing, and reconciling
checks, is an internal control.
Here are
suggestions for safeguarding your company's cash.
●
Make sure all invoices have an approval
signature before being paid.
●
Personally verify that new vendors exist.
●
Require sign-off of employee expense reports by
a higher-level employee.
●
Don't permit the person who prepares a company
check to sign that check.
●
Consider requiring two signatures on checks.
●
Maintain a list of void checks and compare them
to your bank statement.
●
Use a bank stamp to endorse checks immediately
upon receipt.
●
Personally open bank statements and other
mailings from the bank.
●
Review and reconcile your bank statement
regularly.
●
Monitor online access to your business account.
Please
contact our office for details or for assistance in improving controls over
your company's cash.
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