Internal Controls

Maintain > Internal Controls

Internal controls are not your company’s rules or policies. Internal controls are the means by which you make sure your rules and policies are followed.  With that, internal controls can become rules and policies. Often you exercise an internal control and don’t realize it. For example, you implement an internal control when you pay cash for an item and count the change the cashier returns to you.

All areas of your business need internal controls. Below are the major areas to consider, and we have elaborated on the Financial Asset internal controls – just follow the Financial Assets link.

1.  Financial Assets

2.  Physical Assets

  • Items you resell (inventory, raw materials)
  • Items you use in your business (tools, office supplies)

3.  Customer Service Policies

  • Sales returns
  • Customer complaints

4.  Social Media Policies

5.  Human Resource Policies

  • Employee paperwork is in order per IRS, US Dept of Homeland Security and Dept of Labor regulations
  • Employee and supervisor conduct
  • Displaying notices and posters required by law

6.  Payroll

  • Overtime laws are observed
  • Employee vacation and time off are tracked
  • Payroll returns and taxes are filed and paid on time

7.  Government Compliance

  • Professional licenses are renewed on time and active
  • All tax returns are filed and taxes are paid on time

8.  Quality of services provided or items sold