Internal Cash Control Guidelines for Small Businesses

Entrepreneurs should be able to establish a sound cash management and control system. Cash is one of the most susceptible assets to theft within the organization, especially in cash heavy companies like food retail, convenience stores, and fresh produce market businesses. It is a rule to Brisbane bookkeepers to try to minimize cash transactions. Non-cash transactions have concrete documentation and paperwork. For cash sales and disbursements, we can only rely on the cash receipts for record keeping.

The more cash is going around the business, the higher the risk of cash theft, misappropriation, and overall fraud is.

As some business are can only operate on cash basis of selling, we can only design and apply cash controls in order to safeguard the assets of the company.

Here are some of the general guidelines you have to observe when setting up cash management and control system within the company, especially of you are running a cash heavy business.

Separation of Tasks

Define employee tasks according to your cash flow. Do not designate tasks from both incoming and outgoing cash processes. Your point of sale cashier should have nothing to do with the purchasing department. In the same manner, do not give credit collection or sales to bank remittance tasks to your petty cash officer. A third team member, your Brisbane bookkeeper, you or a manager should regularly audit cash receipts, deposits, and disbursements logs.

Access Control

Departmentalize access to your company’s cash, cheques, and records. Unused documents like printed receipts, invoices, and delivery forms should also be under lock and key, with access limited to one or two people. Cashiers’ drawers should only be accessible to the assigned cashier. Install a good quality lockbox within the premises to safeguard cash before bank deposit. Regularly change the code and give it only to one or two employees. Provide ample cash handling training to employees before assigning the tasks.

Proper Documentation

All payments coming to the business should have its Insist on providing a sales receipt if you can. In some businesses like flowers shops, fruit stands, or hotdog kiosks where creating and providing paper receipts can be a hassle, make sure that you have an assigned cashier tending the cash sales. Opening and closing inventory of goods can help you reconcile the sales to the remitted cash and discourage fraud. Request a receipt for all cash purchases.

Regular Reconciliation

Reconcile cash sales to inventory daily, audit petty cash on hand weekly, and have your bookkeeper in Brisbane reconcile bank deposits and cheque payments logs as soon as bank statements arrive. Discrepancies should be looked into more closely.

Starting up a business is always a risk. But a good entrepreneur should be able to minimize, if not eliminate all known and preventable risks. Working with professionals and experts can contribute to your success. Considering all the angles of your business and conduct thorough background check when hiring people you intend to assign to cash handling positions. A certified external Brisbane bookkeeper can help you control risk while working from the outside.