Why Financial controls are a crucial topic for any business
- Lara Manton
- Feb 4
- 2 min read
Financial controls might sound boring, but honestly, they are crucial for any successful, growing business. If you’ve ever found yourself wondering how to keep your finances in check as your business expands, you’re not the only business owner out there wondering the same. This is a challenge almost every business owner faces at some point.
As your business grows, so does the complexity of managing money. Suddenly, there are more invoices flying around, more payments to make, and more people involved in the process. Without some practical controls in place, things can get messy quickly and nobody wants that!
So, what exactly are financial controls?
Think of them as the rules and systems that help you keep track of your money, spot errors before they spiral, and protect your business from fraud or accidental slip-ups. They’re not just for the big corporations, every business, no matter the size, benefits from having a few key controls in place.
Here are a few genuinely useful ones to consider:
Separate duties: Try not to have one person do everything. For example, the person raising invoices shouldn’t also be the one approving payments. Even in small teams, splitting tasks can make a big difference.
Regular checks: Make time each month to reconcile your bank statements with your accounting records. It’s amazing how many little mistakes you can catch (and fix!) just by doing this consistently.
Approval steps: For bigger payments or new suppliers, make it a habit to get a second opinion. It’s not about mistrust, just an extra layer of protection.
Cloud software: Tools like Xero are fantastic because they automatically create an audit trail, so you always know who’s done what, and when.
Access controls: Only give financial access to people who genuinely need it. The fewer people with access, the less chance of accidental (or intentional) issues.
Keep your paperwork: Digital copies of invoices, receipts, and contracts are a lifesaver when it comes to audits or tax time.
The best part? Putting these controls in place isn’t about making life harder, it’s about making everything run smoother, giving you peace of mind, and freeing up your time to focus on growth.
If you’re not sure where to start, don’t panic. ACE-XL is always here to help you review your processes, suggest improvements, and support you as your business grows.
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