Internal controls are a critical component of financial management and play a crucial role in preventing fraud and financial mismanagement.
Internal controls are policies and procedures that a business implements to ensure the accuracy of financial statements, protect assets, and prevent fraudulent activities.
In this blog post, we'll discuss how to implement and manage internal controls to prevent fraud and financial mismanagement.
For example, if your business handles cash or inventory items, you'll need to implement controls to prevent theft or misappropriation.
Making these policies as straightforward as possible and easily accessible online (like in a Notion) will maximize adoption.
For example, the employee who approves invoices should not be the same employee who processes payments.
For example, if your business begins accepting online payments, you'll need to update your controls to address this new risk. You may also want to review and update your policies and procedures annually to ensure that they're still relevant and effective.
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Proseso Consulting provides business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are here to help you achieve your long-term business goals!
Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.