Internal Controls for Small Business

 Every small business must have both a good accounting system and good internal controls. Ideally the same person should not be producing checks and reconciling the bank account.  An owner operator or shareholder should perform the key controls such as signing all checks after they have been prepared. Review the bank statement and credit card statement before and after reconciliation. Examine customer statements regularly to insure all checks received from customers are being posted to their account properly. Cancelled checks should be examined for the proper “pay to the order of” and no alterations. Never give your bookkeeper signing authority on your bank account, line of credit or company credit card.

 Dianne Mueller, CPB.