Accounting controls are the methods and procedures implemented by a firm to help ensure the integrity of its financial data. Documenting how activity is to be recorded forms the basis for consistency and review of business transactions. Proper controls will minimize the opportunity for undetected errors and discourage fraud. They also facilitate audit compliance when, and if, it occurs.
The best tools in the world won’t keep your books for you without solid processes to control the data flow.
- Every type of input to your Accounting system must have a mechanism to prove that everything that should be there is, in fact, there
- Separation of duties is necessary to prevent fraud and ensure quality
- Control points verify data prior to being included in financial reports
Controllership includes understanding and documenting how accounting data will be collected, recorded, and verified. These procedures should be documented in a common area accessible to all and updated every time there is a change. These processes should also be used as the sole resource to train staff.