Tips for Controlling Your Business Cash

If keeping the books is your responsibility, the good news is that you can implement the following function separations to control your business cash much more easily:



  • Separate cash handlers. Be sure that the person who accepts cash isn’t also recording the transaction.



  • Separate authorization responsibilities. Be sure that the person who authorizes a payment isn’t also signing the cheque or dispersing the cash.



  • Separate the duties of your bookkeeping function to ensure a good system of checks and balances. Don’t put too much trust in one person — unless it’s yourself.



  • Separate operational responsibility (actual day-to-day transactions) from record-keeping responsibility (entering transactions in the books).






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Source:http://www.dummies.com/how-to/content/tips-for-controlling-your-business-cash1.html

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