Tips for Controlling Your Business Cash
Part of the Bookkeeping For Dummies Cheat Sheet (UK Edition)
Here are some practical security guidelines when it comes to controlling your business’s cash. Follow these rules to ensure your business’s money handling and recording stays secure:
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 cheque or dispersing the cash.
Separate the duties of your bookkeeping function 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).