Prepare/review controls, polices and procedures

▬ What it is ▬

What are Controls, Policies, and Procedures?

Controls, policies, and procedures are essential guidelines and practices that help your business run smoothly, legally, and ethically. They ensure tasks are completed correctly and protect the business from mistakes, fraud, and legal issues.

Key Concepts of Controls

Approval Processes
Requiring multiple approvals for significant expenses.
Access Restrictions
Limiting access to sensitive information and financial records.

Key Concepts of Policies

Financial Policies
Guidelines for handling financial transactions.
HR Policies
Rules on hiring, employee behavior, and disciplinary actions.

Key Concepts of Procedures

Invoicing Procedure
Steps for creating and sending invoices to customers.
Expense Reporting Procedure
Guidelines on how employees should report business expenses.

▬ Importance ▬

Why are These Important for Small Businesses?

Having well-defined controls, policies, and procedures is crucial for small businesses to operate efficiently, prevent fraud, ensure legal compliance, and maintain consistency. These practices build a strong foundation for growth and success.

Here are some Key factors:

Prevent Fraud

Strong controls, policies, and procedures reduce the risk of fraud and theft, such as requiring dual signatures on checks to prevent unauthorized payments.

Ensure Accuracy

Proper procedures ensure accurate recording of financial transactions, crucial for tracking performance and preparing financial statements.

Compliance with Laws

Policies and procedures help the business comply with legal and regulatory requirements, avoiding fines and legal issues, such as clear HR policies ensuring compliance with employment laws.