Internal control: a financial shield for small and medium-sized businesses

Many business owners think internal control is red tape reserved for large companies. In reality, for SMEs a few simple principles significantly reduce errors and losses.

Segregation of duties

The person who requests a payment, the person who approves it and the person who makes it should be different people. It is the most basic principle, and the most effective.

Regular reconciliation

Reconciling bank balances and receivables and payables on a fixed schedule helps detect discrepancies early.

Clear approval process

Approval limits by level keep spending under control without slowing operations down.

Records and traceability

Every transaction needs supporting documents and must be traceable. Digitalising accounting information processes makes this much easier.

Setting up accounting systems and assessing internal controls is part of S-Solution's Accounting & Advisory service.