One of the first things any professional business accounting service will do for a small business owner is improve their internal controls. Internal controls are the mechanisms through which you ensure that your accounting and books are absolutely correct; the more governance and control you have, the more likely your balance sheet is accurate. Internal controls don't just improve auditing and accountability, they also reduce mistakes and administrative overhead. Here are a few things you can do to improve upon your internal controls.

Restrict Access to the Books

Internal controls also requires internal security measures. Restricting access to your books isn't about not trusting your employees. For a small business owner, employees often means your own family. Restricting access to the books reduces the chances that things could be changed accidentally, or that multiple people could be trying to alter the same accounts. Ideally, only a handful of people should be able to modify anything in your company's bookkeeping software.

Make Sure There Is an Audit Trail

Audit trails tell you exactly what has been changed in your system and when. In many systems, you may need to turn on logging for more information. This will give any auditors or forensic accountants a very easy way to tell who entered in data, how it was changed, and when it was changed. When mistakes do occur, this makes it very easy to track down why they occurred. A system of accountability also means that employees will be more careful when entering in data.

Automate Processes Whenever You Can

Automated processes are very unlikely to introduce error. As an easy example, business accounting systems can automatically import transactions from a bank as they occur. Not only does that mean your accounting system will be timely and accurate, but it also reduces the amount of time that it takes to input this information. Ideally, automated processes should be routine processes that are easy to complete.

Keep Your Books As Timely As Possible

Many small businesses find themselves introducing errors and issues because they let their books fall behind. Letting your books fall behind means that large volumes of data have to be entered at once, which introduces further chances of error. Further, it also means that you won't have your information accessible if you suddenly need to procure funding or court investors. 

Accounting services will generally run a risk assessment to identify potential problems in your internal processes. From there, they will make recommendations for improvement. A professional accounting service like Broutman & Co., P.C. is often beneficial for small business owners who are either just starting out or who want to make sure they are moving forward with the right processes in place.

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