Finance Control Tips
Finance training and development is a crucial skill in the business environment. Failure to implement and maintain basic finance strategies acquired through education and training can lead to a number of fiscal disasters including employee theft. Many companies are caught off guard when they discover that a trusted bookkeeper, accountant, CFO or even a project manager has been skimming money for years.
Here are some sound financial strategies that are valid for organizations of any size:
? The person who approves invoices should never be the same person who writes checks.
? The person who writes checks should not have check signing authority. If this is not practical, the organization should establish a check limit above which two signatures are required.
? Unannounced random audits should be conducted on payables. Invoices should be matched with purchase orders. The actual product or service purchased should be physically accounted for or traced back to the ultimate end user.
? Unissued blank checks should be physically inventoried, from time to time, to look for unexplained missing checks. Keep blank checks locked up.
Finance training education points that one way to control finances is to inspect carefully every business transactions or purchases acquired by your company. Every purchase from vendors greatly exceeding the average amount spent with that vendor should always be scrutinized.
? The petty cash account should be reconciled against receipts at least monthly.
? Travel and employee expense forms, as well as company credit card statements for cards issued to employees, should be scrutinized and reconciled before payment is made.
? Review all fiscal polices at least quarterly and make adjustments when necessarily.
Remember — the easiest way to stop money from disappearing is to tightly control how it is disbursed. You can do this if you can understand better the flow of finances in your company and enroll in online teaching or Distance education in finance with AOT. This will certainly help you achieve your goal.
