4 Tips for Controlling Your Business Cash
Part of the Accounting All-In-One For Dummies Cheat Sheet
Although bookkeepers typically are the ones who record what happens to your business's cash, they aren't the only ones who control where that cash goes. Controlling your company's money is important: A business's cash can be a tempting siren for employees who aren't accountable to the right checks and balances.
Safeguard your company's money by following these suggestions to limit any one person's access to cash:
Separate cash handlers from recordkeeping. Be sure that the person who accepts cash isn't also recording the transaction.
Separate authorization responsibilities from cash handlers. Be sure that the person who authorizes a payment isn't also signing the check or dispersing the cash.
Segregate the duties of your bookkeeping staff to ensure a good system of checks and balances. Don't put too much trust in one person — unless that one person is you.
Separate operational responsibility (actual day-to-day transactions) from record-keeping responsibility (entering transactions in the books).