Tag Archives: Internal Controls

Why is an Effective Internal Control System Crucial for Success?

Why is an effective internal control system crucial for success? Because businesses primarily implement an internal control system to protect themselves from internal fraud and abuse, while many do so with regulatory or standards compliance in mind. Continue reading Why is an Effective Internal Control System Crucial for Success?

What are Simple Ideas to Improve Your Business?

If you are in business long enough you will learn a few things about running a business. Over the years I have run a few businesses and have found the top ways to improve your business. Some of it may sound like common sense, but unless it happens to you, you may not be thinking about it much. What are simple ideas to improve your business? Continue reading What are Simple Ideas to Improve Your Business?

How Do You Identify Policies and Procedures that are Needed?

How many policies and procedures you develop depends on your acceptance of risk and variation within your organization. This acceptance of risk combined with your policies and procedures make up your governance model for how senior management manages risk. How do you identify policies and procedures that are needed? Continue reading How Do You Identify Policies and Procedures that are Needed?

What Is an Accounts Receivable Policy Manual?

The purpose of your Accounts Receivable Policy, found in our Accounts Manuals Template, is to document the financial principles and policies governing your company’s accounting and collection practices. Your Accounts Receivable Policy Manual and associated accounting procedures are intended to satisfy the documentation requirements for an Accounting Management System. What is an accounts receivable policy manual? Continue reading What Is an Accounts Receivable Policy Manual?

What are Static and Dynamic Policy and Procedure Systems?

Can you really have compliance without control? You can check the box that a business procedures exists but a procedure requirement is not about existence it is about deployment and usage. When we are speaking of control, there are really two different control conditions: static control and dynamic control. What are static and dynamic policy and procedure systems? Continue reading What are Static and Dynamic Policy and Procedure Systems?

Why is Succession Planning So Important?

 A company’s most valuable asset is its people. It’s an aphorism many attribute to Marcus Lemonis, but that has actually been understood by successful business managers since before he was even born. Yet in an uncertain world, we can be sure of one thing – nobody is going to stay in their role forever.  Why is succession planning so important?

Continue reading Why is Succession Planning So Important?

What Are Internal Controls for Cash Security?

We all hope our co-workers and employees are honest, and they probably are. Yet, improper cash control, poor cash cycle procedures, and weak cash security can tempt people who are basically honest. Think about parking at the local mall. You always roll up your windows and lock your car to protect your possessions, especially if you made some purchases at an earlier stop. Most of the people who walk by your car at the mall are honest, yet you don’t want to tempt them by making it easy to take something that doesn’t belong to them. What are some internal controls for cash? Continue reading What Are Internal Controls for Cash Security?

What Are Common Embezzlement Schemes?

There are six areas of risk frequently capitalized upon by embezzlers. While these areas of risk are not the only ones containing “embezzlement windows of opportunity”, these are the areas that offer the most significant sources of exposure to your company and what lead to various embezzlement schemes. What are common embezzlement schemes? Continue reading What Are Common Embezzlement Schemes?

How are Financial Controls Implemented?

Financial controls are documented in your finance processes, policies, and procedures manual template. SOX, in general, has generated a lot of discussion about internal controls even requiring financial policies and procedures. How are financial controls implemented?

Continue reading How are Financial Controls Implemented?

What are Financial Internal Controls?

The Internal Control Procedures Series provides a risk reducing framework of financial internal controls for the ten core accounting cycles — these cycles make up the accounting body of knowledge.  Each financial cycle focuses on a key element of business accounting and, therefore, should be covered in your company’s financial accounting policies and procedures manual. Continue reading What are Financial Internal Controls?