Setting up internal controls will vary for each business. Some areas of the business are more at risk of loss or fraud and require more stringent controls. It is important to go through each aspect of your business and review whether you have controls in place.
Who is responsible for making your business deposits? Who is responsible for ensuring all payments received are timely updated on clients accounts? Who is responsible for ensuring business expenses stay within forecasted budget? These are the questions a company's management should have identified and documented as part of the business internal controls.
Accounts receivable are an important asset of the business. Delays or failure to collect accounts can result in cash flow shortages and profit erosion. Consider the following:
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