Who’s Watching over Your Company Cash?

How often do you monitor your business cash accounts? You should be monitoring them on a regular basis. Why? The two main sources of loss for small business is theft and improper expenditures.

There are some things you can do that will reduce you losses, it’s called “internal controls”. Internal controls are standard procedures for confirming the integrity of your financial processes. Segregation of duties is an example of an internal controls. Meaning that you have more than one person involved in the preparation, signing, and reconciling checks. Here are a few things to consider when protecting your company’s cash.

* Personally open bank statements and other mailings from the bank.

* Review and reconcile your bank statement regularly.

* Monitor online access to your business account.

* Personally verify that new vendors exist.

* Maintain a list of void checks and compare them to your bank statement.

* Don't allow the person who prepares a company check to sign that check.

* Require sign-off of employee expense reports by a higher-level employee.

* Consider requiring two signatures on checks.

* Use a bank stamp to endorse checks immediately upon receipt.

* Make sure all invoices have an approval signature before being paid.

For more tips on how to improve your internal controls, contact our office at (855) 977-7623 to schedule an appointment with our advisors. At Summit CPA we offer multiple resources that will help get your business on the right track. By utilizing our Virtual CFO we have the capability to assist you virtually anywhere in the USA.