As a former auditor, I have reviewed many business processes such as accounts payable, payroll, sales audit for proper controls. One thing is very important but not often feasible in a small business is having proper segregation of duties. It is not good to have the same person to do everything without any oversight. This somethimes cannot be help in a small business since staff may be lean, but they are a few things that can be done. As business ownrs delegate responsibilities, their role in some business processes moves from doer to being the monitor.
Here are a few tips:
Cross train employees This helps with business continuity when someone leaves or is on vacation)
Review dashboard reports. It sounds simple, but not always done. Business owners should review and analyze periodically reports of A/R aging, Unpaid Bills, and a snapshot of the P&L.
Ask questions. If you are not sure what your office manager doeS with petty cash, then ask.
Look for a paper trail. Receipts for small pruchases don’t have to be scrutinized, but must be recorded.