It’s important to think about internal controls early as a business owner, as many companies wait until they start losing efficiency or a financial disaster happens. To establish a company culture of success, it’s crucial to create internal controls that can scale with your business as it grows. Continue reading for a few tips on how to scale internal controls for your company.
The very beginning stages of starting a new business often include a few partners operating out of a small space, working tirelessly to generate sales or manage cash flows. While most business partners are very close and place the business’s interests first, there is always a risk that something can go wrong. To avoid this risk, business owners should put a few controls in place from the early stages of their new company. This includes keeping accurate and timely records, rather than waiting until the end of the quarter to hire an accountant. Also, all financial transactions should require the consent of at least two partners to ensure everyone is on the same page. Lastly, get in the habit of reconciling receipts, bank statements, and internal records efficiently.
Once your business has taken off and you have over ten employees, it is often the right decision to group employees into separate departments. The key is to divide tasks within a department but to ensure that no single employee has access to manipulating the books. For example, one employee in the accounting department can handle all sales entries, while another handles all payment entries to ensure nothing illegal is going on.
If you are still too small to properly divide all accounting tasks and create your own accounting department, you could also outsource bookkeeping services to a professional company like The Harding Group. We pride ourselves on offering highly competitive prices, as we know that new business owners need to be smart about where and how they spend their money. Our bookkeeping services include training and support QuickBooks, data entry for deposits, checks and other transactions, bank account reconciliation, credit card reconciliation, data entry for payroll journal, sales tax calculation and payment, full payroll service, and bill paying service.
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Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook,Twitter, YouTube, and LinkedIn.