Accuracy The First Time

Accuracy the first time is the goal. Mistakes happen but the goals were to ensure that is a mistake is made corrected before the close of the month, specified period or as soon as possible. All corrections should be reconciled with the original entry and clear explanation given. The reasons for controls and segregation of duties in organisations and businesses is to spot an issue if it exists, with one of the mechanisms put in place in the accounting team/system/software.

Controls can vary depending on the type of business, structure, financial position and need. The risks associated with your business or organization must be assessed. Controls and check points must then be created to manage your company’s risks best. You must look at every layer of the organisation, every department, the structure of every team and even employees. You must look at the approval chains and find ways to ensure multiple checks and controls are completed by different designated employees, supervisors, managers. These checks can relate to the purchase requisitions/orders, cashbooks, invoices, receipts, vouchers, ledger accounts, accounting software, bank statements, budgets, work list, purchase orders, requisitions, contracts and agreements. Duplication of documents can and does occur, so you must know what you are looking for. Any differences in the amount need to be investigated and settled.

 

Miranda Spencer-Averhart

Accounting Consultant

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