Financial Education | Reasons to establish accounting control measures in companies

in #financial2 years ago

Analyze the accounting control measures when the entities do not have accounting policies that allow them to apply internal control measures on current assets available, affecting the financial due process, without ensuring the financial information required in the administration of the entity.

Source ( shopify )

Likewise, when the management and control are not adjusted to a strategic accounting plan, generating inefficiency at the time of supervising the conventional regulations that must be applied in accounting matters.

In addition to this, when accounting controls are not carried out by a private accountant with monthly book evaluation frequencies. Continuing with the idea, there is no defined program for monitoring administrative and accounting processes, which has a negative impact on asset control, limiting financial decisions and reducing asset protection.

And also when the process carried out in cash and petty cash, does not comply with conventional accounting standards, since there is no definition of those responsible for the cash count, the subject of the cash count, nor is the controllership established at the end of each month.

Source ( tallysolutions )

In the above cases, it is recommended that new accounting management policies be established where internal control is regularly applied at the close of the accounting period, taking into account factors such as the trial balance, cash and petty cash counts and bank financial records, so that reconciliations are verified and reported in the corresponding primary and auxiliary ledgers.

Transformational leadership and contextual performance
are the main factors that most influence organizational culture.

If you wish to expand on the subject, please visit this link