Internal control measures

Internal Control Measures The use of internal control measures is one of the most important aspects of a company’s financial future. First and for most internal control measures such as a bank account protects a company from being victims of employee theft. It assures the company’s finances are safe guarded. When a company uses a bank, it leaves a paper trail for the company so they can see where and when money was taken and what it was used for. The use of bank accounts affect management’s decision making because they can see where money is being spent that is and isn’t necessary. They can identify where they need to cut funds and or add funds. A bank also ensures that the financial information is correct. It is really important for a company to have accurate financial documents, and banks provide those. Generally every month the company will receive a bank statement and the person in charge of the company’s books will review this information and verify everything. If there are discrepancies then they are easier to identify and then the issue can be caught and dealt with in a timely matter, which without bank statements could go unnoticed for years, or in some cases not at all. Having internal control measures such as a bank is one of the most important key factors to having a business that will succeed. It guarantees financial security within the company. The company can then focus on other things then making what the bank does their main focus. A huge concern for any company is theft, employees are coming up with clever ways to steal from the company they work for, and having internal control measures such as a bank account definitely prevents and makes stealing from the company a lot more challenging than it used to be.

4. 66.8 days
5.10,000 +550=10,550
6. $600,000 / $75,000 = 8.0