Practice These 5 Ways To Strengthen SMBs Internal Control!!

Small businesses are on a tough ride these days and so are security frameworks. Most of the small business owners don’t understand the actual need of applying security practices into their business environment and results in loss of data and company’s integrity. The presence of an effective internal control framework ensures that whole data is securely stored, that processes are functioning productively, that financial information is well-maintained, and organization is compliance with all the needed regulations.

It is better to adhere strict security laws within your small business by implementing efficient internal control system and stay away from internal frauds and external risks. Here are 5 best practices to neglect business risks caused by internal frauds:

1. Think Systematically While Planning Accounting System Setup

Numerous SMBs put their administrator right on default which causes mess later on; rushing fast while setting up the system rights and offering admin accesses to every employee make the whole accounting setup more friendly for internal frauds. However, there are plenty of businesses who are looking for security strategies which will further handle all the critical safeguards precisely.

Automated applications like cloud-based QuickBooks also offers great ease by navigating all security alerts in a timely manner. Such applications have several built-in internal control functions which make the overall setup more transparent and easy.

2. Handle Your Business Bank Statements On Your Own

Most of the internal frauds happen when we overlook bank statements and rely on others with the same. It sounds a critical task but a mandatory one — reviewing of bank statements should be done on your own — without trusting any third person. It is also important to check that the bank statement is unopened when received by you.

Even after receiving it, scan the whole statements and go behind red flags if there is any. A quick review at the end of every month also plays a vital role; track all the made transactions with your bank statement to reduce risks.

3. Turn Traditional Bill Payments Into Pay-as-you-go

Automating bill payments is one advance and efficient way to reduce billing frauds in your business environment. Hosted QuickBooks offers a smart way to keep your bill payments in records i.e. Pay-As-You-Go, this feature allows your customers to pay digitally and also easy your bookkeeping work. It is a part of your hosting services and you don’t need to pay separately for it.

One another way of automating bill payments is Bill.com which allows clients to automate processes smartly. Such automated ways of receiving payments from the client are not only secure but also saves your time and money.

4. Track Your Receipts & Files Time-to-time  

QuickBooks bill payment function also saves scanned images of every transaction made which later on helps business to check for any kind of fraud or misuse. It helps businesses to create alert for any kind of wrong cashflow process and protects your files simultaneously.

5. Separate Billing From Deposit

There are chances of frauds when you allow the same person who does billing to perform check deposits task. It is easy for a person to delete any original invoice entry from the database and made transaction of the generated invoice to their own name. Such conditions, if not tracked within time, causes internal frauds and also affects your business cash flow management.

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