|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
One of the most potentially costly problems at my company is the lack of accounting controls and procedures. We have an average of 120 employees, but our office only has two people in it. There are no procedures in place to provide controls to prevent errors and or theft. I was doing all accounting functions, but recently made the decisions to hire someone to help. ...
Embezzlement by employees and other trusted individuals is a major concern for small businesses. ... Putting some controls in place could easily have prevented this. ... They also state that small businesses are the most vulnerable to occupational fraud and abuse. The average scheme in a small business causes $127,500 in losses. ... (2002)
This means that it is extremely important, especially for small businesses to implement accounting controls and procedures.
I have found that the atmosphere for establishing and maintaining excellent internal controls starts and must stay at the top. Accounting controls, or “internal controls,” are designed to provide the confidence that a company’s goals will be met. Management establishes accounting controls to help meet its own objectives by producing reliable financial reports, encouraging effective and efficient operations, protecting assets and ensuring compliance with laws and regulations. Small business owners and managers therefore need to be aware of how proper accounting controls can be not only beneficial, but essential to the operations of the business. ... Management must also be able to obtain reliable accounting information for internal decision making to efficiently meet business goals that have been set.
The accounting system must be set up in a way to deter employees from intentionally or unintentionally misappropriating company assets. ... Removing cash from the company before it is recorded into the accounting system is skimming. Larceny occurs when cash is taken from the company after it has been recorded into the accounting system.
Approximate Word count = 1510
Approximate Pages = 6
(250 words per page double spaced)
|
|
|
|
|
|