Even if you have your wife, brother, sister or son on key positions within the organisation, that should never be a substitute for effective internal controls. These are mere human beings capable of conniving and being convinced otherwise. What maintains and locks in your value are strong and effective internal controls.
Controls assist on the accuracy and completeness of your transactions, systems and records. I have seen some people who take what they get from their cash box as the sales figure, that’s far from the truth and is also a good and sure recipe for winding up operations.
Actual sales are determined by computing the products actually sold and their selling prices, that gives you the sales figure that you must then compare with what’s in that card board box. Point of sale systems have simplified this process and these computations are just done automatically and you run the sales report.
The story doesn’t end there. Who at your organisation verifies what’s on the receipt against what the customer finally gets? That’s another area where most people lose value on. You know when we talk of internal controls, we’re talking about the entire organisation in terms of how every activity is done.
We can also move on to your procurement process until the goods are received in your shop. How accurate is that whole process. Are you not capturing empty invoices without the corresponding merchandise? You boast about a non existent stock holding figure if you’re not careful.
Let’s enrol for the upcoming Institute Of Entrepreneurs Zimbabwe INTERNAL CONTROLS Training program slated for the 4th to the 7th of April 2023.
Don’t miss this one as it is pivotal in securing your company’s valuables and ensuring accuracy and completeness of transactions.
Register today on +263719592232