Site icon Impact Accounting and Consulting

Internal Controls Matter

At Impact Accounting, we believe that the Accounting function of an organization should be supportive, accurate, and informative.

We realize that implementing internal controls takes time that is hard to come by these days… but it’s worth it. We love working with business leadership or ownership to implement, augment, and design controls that are realistic and provide ease of mind for all involved.

Reliability – Internal Control is an important aspect of ensuring that financials are reliable tools for management and ownership to use in decision making.

Helps in Staff Turnover  – Proper internal control requires documentation. This helps ensure that there is a paper trail in the case of staff turnover.

Protects Employees – Documented internal controls protect those involved in running the organization from the perception of anything unethical or conflicted

Below are some basic controls that work with many types of organizations with small teams involved in the financial processes as well as a checklist for you to use to take a temperature on the internal controls in your organization.

General Controls:

Payroll Controls:

A/P Controls:

Additional control would be for Check Signor to sign a copy of the Check register (Vendor name, check numbers, date, and total paid)

Banking Controls:

Journal Entries and Month End Close:

Control over Credit Cards and reimbursements

Compensation related controls


In addition, here is a Checklist/Questionnaire that will aid you in determining which controls are needed. For more information contact Impact Accounting by clicking this link.

Y   N   Do team members share logins to ERP/ Accounting/ other software involved in

financial reporting?

Y   N   Are payroll reports reviewed by someone other than the processor?

Y   N   Does management review the financial statements?

Y   N   Is a monthly packet prepared with financial information that contains supporting


Y   N   Are signature stamps used or pre-printed

Y   N   Is check stock locked?

Y   N   Is there a three way match of purchase order, receiving document and supplier invoice?

Y   N   Are Time sheets approved by supervisors?

Y   N   Are totals entered into the payroll system matched to the time sheet totals?

Y   N   Is direct deposit used exclusively for payroll?

Y   N   Are invoices stamped “paid” when they have been paid?

Y   N   Are inventory counts verified by someone?

Y   N   Is Petty Cash on hand?

Y   N   If Petty Cash is used, is it locked up?

Y   N   Do ACH or online bill payments have a notification that goes to someone in addition to the individual processing the payment as a confirmation?
We hope you found this information helpful. Please contact Impact Accounting by clicking this link to discuss more.

Exit mobile version