Keep an eye on your company’s cash

Posted on Oct 4, 2016

Do you regularly monitor your company’s cash accounts? Being aware of where your cash is going can help prevent theft or improper expenditures, which are among the chief sources of loss for small companies.

What can you do to reduce the risk of losses? The textbook answer is to implement “internal controls.” Internal controls are standard procedures for assuring the integrity of your financial processes. For example, segregation of duties, such as having more than one person involved in preparing, signing, and reconciling checks, is an internal control.

Here are suggestions for safeguarding your company’s cash.

  • Make sure all invoices have an approval signature before being paid.
  • Personally verify that new vendors exist.

    Photo by Stuart Miles. Published on 05 March 2013 Stock photo - Image ID: 100144198

    Photo by Stuart Miles. Published on 05 March 2013
    Stock photo – Image ID: 100144198

  • Require sign-off of employee expense reports by a higher-level employee.
  • Don’t permit the person who prepares a company check to sign that check.
  • Consider requiring two signatures on checks.
  • Maintain a list of void checks and compare them to your bank statement.
  • Use a bank stamp to endorse checks immediately upon receipt.
  • Personally open bank statements and other mailings from the bank.
  • Review and reconcile your bank statement regularly.
  • Monitor online access to your business account.

Please contact our office for details or for assistance in improving controls over your company’s cash.

Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and Twitter.