Internal Controls

You’ve worked hard to reach the pinnacle of your field. As an independent business owner, savvy individual, or industry executive, you’ve earned your place in the world. Now you want to protect what you have, while sowing the seeds of growth. The lifestyle you enjoy today is the result of:

• • Maintaining your vision
  • Working towards a goal.
  • Having the discipline to stick to your plan

Instead, with audit controls in place, your NYC tax accountants can catch mistakes and outright fraudulent maneuvers — if not before, then very shortly after, they occur. Some of the places where you might find yourself vulnerable to fraud, mishaps or oversights include:

• Account payables in which you may be overcharged by vendors or where untrustworthy employees can create false invoices
• Check signing privileges to staff or contractors who don’t closely watch the payment schedules
• Employees or contractors not fulfilling their agreements
• Disbursements that aren’t closely monitored
• Managing Cash Flow that leaves wiggle room for embezzlement
• Collections that just write off bad debts inappropriately
• Workers’ compensation fraud
• Accounting for Payroll that doesn’t accurately portray the real work being done

Other common internal controls for keeping your cash flow straight and your staff members honest include:

• Requiring two signatures on checks
• Allowing surprise audits
• Inspecting inventory on an irregular basis
• Setting up procedures for anonymous whistleblowing
• Requiring documentation trails
• Running background checks
• Limiting access to accounting books
• Bringing in a third-party CPA for audited financial statements
• Appraising key assets and resources occasionally
• Setting up computer controls

CONTROLS

No matter what size of enterprise you run, the internal controls you set up with your personal accountant will save you money in both the short term and the long run. It’s never too early to do a surprise internal control audit, but it can be too late. through regular reports from your internal and contract accountants, you always know where you stand. Make the development and implementation of the necessary internal controls part of your strategic financial planning processes. Proper, sustained oversight ensures you success now and in the future.