While public companies are under increased scrutiny to demonstrate effective internal controls to satisfy Sarbanes-Oxley requirements, but many privately-held companies lack even basic internal safeguards.
Fraud isn’t the only issue small business owners need to worry about.

Internal controls help ensure accurate accounting records, up-to-date inventory records and proper account assignments of expenses. Internal controls help ensure that all orders are fulfilled, entered and paid.

In one case, Ablon and Company audited one of our clients and discovered that products had been sold but not billed. The client was losing thousands of dollars in sales because the company lacked an effective process for processing and billing orders.

Internal controls help determine how to:

Control Cash Drawers And Credit Cards

Control Cash Receipts And Deposits

Manage Problem Checks

Control Check Signing Authority

Manage Check Requests

Manage Petty Cash

Manage Chart of Accounts

Control Files And Records Management

Manage Travel And Entertainment

Manage Confidential Information Release

Control Documents

Manage Inventory Control

Manage Inventory Counts

Manage Fixed Asset Control

Manage Customer Property

Don’t make the mistake of thinking your company is too small to worry about internal controls. Ineffective accounting processes can hurt you just as much as a big corporation.

These articles are intended to provide resources for the tax and accounting needs of small businesses and individuals. The information contained in this Website is intended to provide general information on matters of interest in the areas of tax and accounting. Users are encouraged to contact us regarding specific situations.