Setting up auditing controls and policies is one vital procedure to ensure the financial soundness of your business. A lot of businesses fail because of lack of proper auditing and proper policies to keep them running. Here are a few things that you would need to do to set up your business’ auditing controls.
- Assess your financial needs. Before anything else, you should be able to identify what your business needs to focus on. You need to ask yourself a few things. Have you been spending so much that you are worried that your business will run out of funds soon? Is your current program or project well supported by the current budget? Is it clear to people involved in your business what should be done when making transactions? Is it clear to your employees what benefits they have? What policy has been working for your business so far? These are just some questions you need to ask when starting up your auditing controls and policies.
- Find an internal auditor. An auditor is a certified public accountant that assesses your balance sheets and takes care of the financial reporting of your business. He prepares the financial statements, which involves the risk assessment and the current status of your business. He performs checks and balances with your accounts and can point out to you the current state of your finances.
- Discuss with your heads. After the initial assessment of your internal auditor, have a copy of the information that has been given to you and see what your next action should be. More often than not, the information willl be a mix of good news and bad news, so be sure to delegate it properly to your employees and communicate how to handle the information given to them. Whatever changes will come out of this must be relayed to your internal auditor to adjust the needs of your business.
- Implementation and re-assessment. Each business has its different needs so be sure to take note of the changes you have made to ensure a smooth flow in your proceedings. Track the efficiency of your new policies and proceed to re-assessing them about after a month of implementation. Check your inventory for further analysis of these improvements or lack of it, in order to properly assess your changes, both personally, and by your internal auditor.
There are a lot of other factors that you should consider when starting up your auditing controls and policies and you can even do it per department; choose whichever will serve your business the best. Remember to be critical with the decisions that you will make for setting this up, because it deals with the life source of your business. Take care of your assets and liabilities, know what can be discarded, what can be improved, and what can be adopted to make your business run strong.