All the processes that are carried out within an organization are subject to different control and monitoring measures. But very especially when it comes to accounting and financial management, this is simply key to the success of the company.
Having clear accounts is essential for the good health of any organization. Well, although accounting management is not the only factor to consider in the success of a business, if we could point them out as one of the most important due to their ability to offer guidance and direction in the direction of the company and the achievement of the proposed goals.
However, it is not always clear how to track the many processes that accounting and finance involve. To make it easier, here we share 10 keys to have better accounting control.
1. Establish clear policies and systems.
Having clear policies and procedures ensures that everyone involved in this area of the organization will follow the same guidelines. In this way, both on a day-to-day basis and in monitoring and control tasks, it will be easier to notice any deviation, error or inconvenience.
Thus, such policies must be in writing so that employees know how to proceed in all scenarios that may arise. Procedures manuals are one of the clearest ways to specify the guidelines to follow.
2. Simple and orderly accounting.
The guidelines regarding the records and management of the accounting and financial information of a company should not only be reflected in writing. If not, in addition, it must be based on processes that are as simplified as possible. At the same time they must follow a certain order.
This makes it easier to control existing data at the time of inspections or audits. But it is not only about making control management easier, an orderly accounting reduces the errors and mistakes that can be made in everyday life. A simple and orderly accounting is indisputably much more reliable, and leads to better results.
3. Have competent personnel.
We all know that human error is a reality. However, it is something that is reduced when we have capable and qualified professionals to carry out the tasks that have been delegated to them. In addition, they must be people prone to constant updating, because as we well know, the accounting and tax world can become changeable.
It is also advisable that the members in charge of accounting procedures have a good command of digital tools, such as spreadsheets, and accounting software, since these facilitate the monitoring of the processed information.
4. Separate key functions in different positions.
As far as positions and roles are concerned, it is important to have an adequate separation of the functions and duties of each person. This is so that the same individual does not control an entire process alone, since this can lend itself to deviations, cheating and other vices. In this sense, an example of what should be avoided is that a teller has access to the books.
5. Have good accounting software.
In these times, it is essential to have a program that allows not only to record and analyze the information in a simple and precise way, but also helps to keep the different accounting, finance and billing processes under control. Thus, an adequate accounting software will allow you to control your inventory and other assets, manage expenses, track liabilities and inspect the different accounts in less time and with greater ease.
It also offers various control tools regarding access levels to limit access to certain levels and types of information according to the functions of each employee. In addition, it allows at the time of an audit to identify which user made the error and how the mistake occurred. This is to prevent the error from occurring again in the future.
6. Keep accounts up to date.
Nothing hampers the control of accounting and financial management more than not worrying about the whole thing until it is time to comply with the Treasury. Accounting is a day-to-day job. Thus, an up-to-date accounting will allow us to foresee any type of anomaly or error that is occurring or may even occur.
In addition to this, we must remember that accumulating unaccounted-for papers can lead to numerous problems of various kinds. In addition to the loss of papers, or problems to obtain the exact dates or origin of each document.
7. Make periodic reviews.
The ideal is to carry out periodic reviews of the information posted, at least quarterly. With this, it is possible to know the solvency, liquidity and real indebtedness of the organization. At the same time, different situations can be identified to be corrected with the necessary time to take action on the matter.
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These types of reviews are usually internal and carried out by company personnel according to the corresponding guidelines and policies.
8. Carry out an annual audit.
Unlike the quarterly verifications, it is advisable that the audit is carried out by an accountant external to the company. This in order to guarantee the partiality of the process. In addition, it is a more rigorous and in-depth process, applied globally to the company’s accounting and finances, encompassing all the departments involved.
9. Frequently monitor sensitive items.
Not all accounts are the same, nor do they have the same weight in the company’s accounting. Thus, it is advisable to pay particular attention to monitoring those that are particularly vulnerable to deviations or those that may represent a greater flow of income for the organization. The latter become relevant, since, by representing money inflows, they also imply higher taxes to be paid.
10. Be thorough with your inventories.
It is important to keep a detailed control of the inventory in order to guarantee that what is in the system coincides with the real stock in the warehouse, as well as with the sales and income that have been generated. Thus, the physical count of your inventories must be carried out at least once a year.