Tips for Controlling Your Business Cash
Part of the Bookkeeping Kit For Dummies Cheat Sheet
Although bookkeepers 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 pretty tempting siren for employees who aren’t accountable to the right checks and balances. Follow these suggestions to limit any one person’s access to your company’s money:
Separate cash handlers. Be sure that the person who accepts cash isn’t also recording the transaction.
Separate authorization responsibilities. Be sure that the person who authorizes a payment isn’t also signing the check or dispersing the cash.
Separate 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 it’s yourself.
Separate operational responsibility (actual day-to-day transactions) from record-keeping responsibility (entering transactions in the books).