About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by advising them regarding their financial, technology and human capital management needs. Show Keeping cash on hand in your business? It’s a good idea to have a safety net, but be sure to have internal controls in place. We also discuss how to keep your control environment in place with many still working remotely. *Editor’s Note: This blog has been updated as of September 20, 2021. Does your organization still receive cash payments? Though many organizations try to avoid keeping cash on hand, sometimes it’s necessary. Luckily there are ways to help safeguard your business. In order to protect yourself with regards to cash collected, it is important to implement good internal controls within your organization. How has that changed in the remote work environment? Read on. 5 key internal controls There are five ways your organization can strengthen its internal controls over handling cash:
Maintaining Controls in a Remote or Hybrid Work Environment COVID-19 has forced many organizations into a remote or hybrid work environment, bringing on a new set of challenges. Internal controls designed to operate effectively in an office environment may not be ideal for a remote or hybrid workplace. Here are some ways you can maintain controls in a remote or hybrid work environment.
With the implementation and proper monitoring of the five controls noted above as well as reviewing to ensure all controls are continuing to operate properly in a remote/hybrid environment, an organization can help minimize the risk of errors, decrease the opportunity for fraudulent activity and increase the chance of detecting errors within the cash collection cycle. Management should also investigate and resolve discrepancies noted from reviews, reconciliations, and other internal analysis of accounting transactions on a timely basis. Have questions on your organization’s cash handling procedure? Reach out to us. What is internal control over cash receipts?To control cash transactions, organizations should adopt some of the following practices: Require background checks for employees, establish segregation of duties, safeguard all cash and assets in secure locations, and use a lockbox to accept cash payments from customers.
What are the effective procedures for controlling cash receipts?Cash Receipts. Restrictively endorse checks immediately upon receipt stating “For Deposit Only – Syracuse University”. Keep cash/checks in a locked and secure area until they can be deposited. Access to the area should be restricted to only designated individuals. ... . Make timely deposits.. What is the most important internal control over cash?5 Important Internal Controls for Cash Disbursements. Segregate duties. The foundation of a good internal control system is segregation of duties. ... . Review authorized signors. ... . Consider requiring dual signatures. ... . Remember the wire transfers. ... . Reconcile bank accounts in a timely manner.. What are the 4 internal control measures for cash?There are four internal control measures for cash. They are employee background checks, use of written protocols, separation of duties, and securing assets and cash in safe locations.
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