Magnitude is a full service digital marketing agency with extensive data management, public relations and new media experience. We work with select partners to grow online sales channels through strategic marketing efforts. Moreover, we consult with hundreds of Tucson based brands on inventory control, internal controls, design projects, and more.
What are Internal Controls?
According to Forbes, “Internal controls are designed to provide reasonable assurance regarding the achievement of operational objectives.” These objectives include accurate financial reports, compliance with regulations, and effective operations. In other words, internal controls are sets of rules companies put in place to protect assets and help them make better decisions. Not only these rules abide by the laws of each state and country, but they also follow the directives of management in each company.
Performing an audit
Operational efficiency and fraud prevention are among the core benefits of having a robust internal control system. Moreover, internal controls limit the risk a firm has to manage. At the same time, because internal control means implementing more rules, it can also slow down the natural flow of the business process. Even so, many argue that a suitable control system can provide great insight into how the business develops and overall helps manage a company better.
A few tips for better internal controls
Every business needs a good internal control system, a plan that is clear and concise, tailored to the needs and goals of each company. An essential aspect of keeping your business up and running is the compliance with rules and meeting specific certifications requirements. So, imagine a plan that makes the execution and control of these practices quick and easy. Use these tips to help you see it through.
Stay proactive
If being proactive is a must in any field, when it comes to internal control, we can’t stress enough how much it can help your success. Stay one step ahead of what needs to be done. Plan ahead, don’t waste any time, check whether and how every part of the system works on a daily basis. Stay in the loop, encourage your team to report every problem directly to you and take care of it as soon as it arises.
Organizing paperwork to be in control of everything
Be in control
Are there documents you needed to take care of and you didn’t? You know your priorities better, but taking care of your documentation is crucial to your success. You want to stay on top of things even when you don’t have time to take care of your documents. So, organize them first and then set up a time later in the week where you can take care of them.
Make the most of your results
We already established that internal control is a system that allows you to take control of your company. Moreover, it will help prevent fraud from happening. However, when something unexpected does happen, use it as an opportunity to learn. Check the results, see what went wrong, and then inform the members of your team to make sure it doesn’t happen again.
Sharing the results of your internal control with your team
Why should you use our services to help with your internal controls?
Breaking into the small business world is difficult, but we are here to guide you through it. If you need help establishing a robust internal control system, we’d be happy to discuss your project needs. Our team can also write your business plan or develop your ad campaign. Contact us, and we can talk about the details of your journey.
If you would like to know more about internal controls, check out these articles.
“Four Tips For Achieving Clean Internal Control Audits.”
“5 Ways to Improve Internal Accounting Controls and Oversight in Your Business.”
“What Are the Types of Internal Controls?”
Subscribe to our newsletter and follow us on [social media].