Best practices with account reconciliations

As we put another calendar year in the books and start closing out year-end accounting records, now is a great time to revisit one of the key components of the financial close process: account reconciliations. By performing proper account reconciliations, businesses can prevent a lot of material errors that can occur on their financial statements. …

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Internal Control & Outsourcing

What is the first thing that comes to mind when you think of internal controls? Making sure work is double checked? Making sure that the employee in charge of reconciling the bank account does not also receive the mail, sign checks, and reconcile receivable and payable accounts? Segregation of duties is typically one of the …

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Fixed Asset Tracking: Why Software is Important

It may seem relatively simple at first to track your assets using an Excel spreadsheet and a couple of formulas to calculate depreciation. How could this create issues down the road? As your business grows, and more assets are acquired, the accuracy of your asset valuation could be steadily decreasing. There are multiple vulnerabilities associated …

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Segregation of Duties: Cash

In previous blogs, I have written on “Segregation of Duties: Accounts Receivable and Sales” and “Segregation of Duties: Inventory and Cost of Sales”.  Have you made the necessary adjustments to your internal control structure to adequately provide these important segregations?  Just to reiterate – these are extremely important if you wish to reduce the risk …

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Segregation of Duties: Inventory and Cost of Sales

Proper segregation of duties is an essential element of your company’s internal control. Previously, we wrote about segregation of duties for the accounts receivable and sales process. Those were great for reducing the risk of error or fraud within your organization related to the handling of sales and accounts receivable stand point. How are you …

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Physical Safeguards for your IT Environment

You may think that the term “physical safeguards” for your information technology environment apply only to the protection of your IT network and data from intrusion and theft; but did you know it is just as likely, if not more so, to be damaged from improper storage.  What I mean is the possibility of fire …

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Understanding the Control Environment

When trying to deter fraud, most companies focus their time on developing effective internal control procedures and segregation of duties.  Though developing these types of systems are important, a common element of the COSO Internal Control Framework that is often overlooked is the organization’s control environment. The control environment is important to all organizations since …

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Segregation of duties: accounts receivable and sales

A key concept of internal controls within an organization is segregation of duties. Segregation of duties helps to significantly reduce the risk of error or fraud. Do you know which duties need segregation? Here is a little refresher on some of the control activities that should be segregated when it comes to accounts receivable and …

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8 Tips to Manage Inbound Freight Costs

If you are in the business of providing goods, then you undoubtedly are in the business of managing your freight costs (both product in and product out).  This posting will focus on managing inbound freight costs. For many companies, freight expense can be a significant portion of total expenses incurred for the year. So, what …

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