Who’s Watching Your Company Money?

Is your company losing money due to improper expenditures or possible embezzlement? Regardless of the size of your business, you need to keep an eye on the company money. The simplest way is to implement standard internal control for most businesses.  Here are some steps you can take:

* It’s a good idea to ask to see the bank statement and canceled checks for the prior month.

*Review in detail. This will remind you of how your company’s cash is being spent and will also increase your chances of spotting fraud.

* Ask your bookkeeper or accountant to give you a signed note each month affirming that the bank statement has been reviewed and balanced.

* Implement a rule that the person who prepares a company check can't sign that check.

* Have a policy that all employee expense reports must be signed off by a higher-level employee.

* Maintain a strict rule that all invoices must have an approval signature before being paid. Nothing focuses a person's mind like having to sign his or her name on something.

* It's important to follow through periodically by personally checking to make sure that these procedures are being followed.

For further information on how to improve controls over your over your company cash flow, contact our office at (260) 497-9761 to schedule an appointment with our advisors.