A strong control environment will ensure a Small Business is run efficiently and there is a reduced exposure to unknown tax liabilities and fraud. As owner you should consult your Small Business Accountant on a continuous basis and update the internal controls as the business grows.
A Small Business has limited resources and as owner you need to protect and efficiently manage these resources. The Small Business owner must pay close attention to internal controls and how efficient they are, since this is the key to maximizing the business potential and reducing the risk of loss.
From our experience as a Small Business Accountant there are several areas that are likely to affect most of our Small Business clients:
These days most Small Businesses use an off-the-shelf accounting package to track payroll. Some of the most popular accounting packages are Quickbooks and Simply Accounting. As a Small Business Accountant we can work with both packages and we can provide value-added services to our clients.
Without proper supervision in place there is potential for fraud or errors. Some of the recommended controls for Small Business are:
Cash and lack of safeguards in place can increase the risk of fraud. Some Small Businesses do not have strong internal controls to safeguard cash and sometimes this results in misappropriation and fraud. As a Small Business Accountant we recommend the following:
Accounts receivable are one of the most important assets for a Small Business. Weak internal controls in this area such as failure to collect receivables can result in cash flow problems and eventually to reduced profits for the Small Business owner. As a Small Business Accountant we always recommend our clients pay close attention to receivables. Some of the following points should be considered:
The above internal controls should be considered as a guideline only and are not intended as an exhaustive list. As Small Business Accountant we always recommend our clients discuss the internal controls with us. Strong internal controls will provide for an efficient and reliable work environment that will increase the profits for the Small Business.
Your trusted Chartered Accountant provides internal controls advice to small business and contractors.