Bad habits are so make sure you stick around to be and i'll give you some more insight

into
other ways you can safeguard your business a guy is a let's get started there really five key
components to having good internal controls let's get started with the first one control
environment so one more time control environment we are talking about just the nature of the
environment of your business are you at the cold you expect your people to be at the cold are
you doing background checks on your people to have a board of directors were over same
things making sure things are being done right are you including support for all your
transactions things like that you had a good solid control environment then it will be harder for
that stuff to happen because if i would by sky nthe vediamo up and out and doing things the
right way criminal really want to be part of that sort of thing so i never what control limit the
second thing is risk assessment so now you got your surrounded by the right people doing the
right stuff and you need to take a look around and go ok what could really harmony business mit
internal threats in my the external threats what what what things are not well protected so some
good examples are not say you are doing you're coming on desktop software and you live on
the san andreas fault line in california decide to settling into ocean maybe you don't have
backup or you do but the backups are in the same city as you are so you just lost all of the
paperwork everything for your business if you're keeping your accounting in the cloud then it
doesn't really matter what happens to your office you're so can have that information it there are
also some risks are you ugly about having your information in the club so you want to do things
to backup that information also or have some type of security around it just make sure that the
two of the grade using they have security implies they have docket better happening here
maybe some of your threats or internal and you you a password setup to protect your
accounting system but you keep your password on your needs your keyboard into do that .
That's not a safe to take a look around what things to be more protected and then think about
the things the actions that you can take to safeguard your assets and you business to third
component of internal controls is control activities not this is what most people think of when
they are thinking at the internal controls is actually the actions that take place to help protect
your business so one of those is within we do some could have got that before we're if you have
a do you have a computer system that's really good about your business make sure you back it
up and so do you have been to places so if something happens to one of them you're still
protected in you can get that information back working again ok here the topic that a lot of
account like to talk about and i'm segregation of duties this is really kind of hard for small
businesses because i usually don't have very many people in the next but do the best you can
so here's an example you don't want the person who taking the checks to the bank to be the
same person who is reporting that deposit you got a batch of tracks with a 10,000 hours and
your the bookkeeper you record 8000 you deposit can you write yourself a check for $2000 to
you take 3,000 os out of the bank so the net deposit of 8,000 actually match is ok . And you just
lost without load so you want be careful that i would especially careful of giving the bookkeepers
control the ability to spend your money you just want to be really careful that's what i think so
split up the operational duties from the accounting duties another example is proper
authorization of transaction so one of the best examples i have if i know a lot of businesses who
they really busy and they want like the early payment discount so they give their credit card to
their suppliers so they can try to my let us not just have their credit card on the count like that
you don't want them to be able to charge up your card billing eliseo either you need me pain
really close attention to have its being used and jump all over them if there's unauthorized use
or better yet do not give out your credit card information and i know it takes a little bit of extra
time or effort to monitor that kind of that kind of transaction by it's really much better than being
ripped off without you know yet another control activity is actual physical security so let's say
you are doing all the right things you have a purchase order you receive the product yet data
matches up you can an invoice that matches up yeah i did everything right and i spend my
money on a product it's all good let me just put it in this warehouse and then i'm enjoying it
seriously disappear sony warehouse sale invest in things like security system i paid attention to
to the actual physical protection of your assets and another good example of that is limited think
access to people who don't give you don't need to be spending the money i just need to look at
what's going on in your account we at specific line to all the time to give us a limited bank
access to the we can view transactions that we can actually make transactions . That's really
important way to protect your assets the fourth component is information and communications
so that the best example i have a blessed is actually an accounting system so if you can trust
that all the information is going into your accounting system accurately then the reports are
coming out can tell you a lot about your business maybe you stay where turns going up and up
and up but in reality when you're paying attention operations that doesn't really reflect what's
going on so maybe somebody in your business is giving out credits to invoices when they really
shouldn't be or if you are looking at a mean torre and it it's not as high as it supposed to be may
be something else is going on there so i would say educate yourself and make sure you know
how to read financial statements and then that information that you getting from your coming
system will really help you out in identifying potential problem areas v component at is
monitoring i think this is really important and often overlooked people will set up the system and
their like i am so protected but then they don't follow up on the system to know if it's working on
not so one of the best ways to do this is take this ago image for accounts of your inventory at
least annually but i would recommend for early or better yet monthly then you can kind of see a
good this is this is working in this is not working in ok what why are by numbers so far off so
that's a very good way to make sure that things are staying safe and protected just like you on
ok i hope you like this video if you want even more