Maintain Strong Financial Controls

by Lois Leonard

1 min read

You can keep track of your company’s financial resources by setting up strong financial controls. Financial controls are best practices and policies that you put into place so that there’s a clear paper trail or digital trail that shows you exactly how much money your business spends and how much it earns. Setting up financial controls can be fairly easy. Keeping all your receipts is an example of a financial control. It’s also a good idea to have two bank accounts for your business – one for deposits and one for expenses – so you’ll know exactly how much your business spends and earns in a given time period. Using cloud-based accounting software is another effective financial control. You can set up the software to process all of your transactions, pay your employees and vendors, and send invoices to your clients and customers. When you do your internal audits, accounting software can generate the financial reports you need to find out how your business is doing with the click of a few buttons. If you have an accounting background, you have the knowledge base to setup the policies and procedures necessary for keeping track of your business’s money. If your small business is more established and generates a significant amount of revenue, you may need to contract the services of an independent accounting professional to help you set up financial controls to stay on track financially. When you run a business, you need to keep track of the money. Financial controls can help you keep your books in order as your business grows.

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