| Business must always look at the bottom line. This | | | | check rather than cash. In addition to providing a |
| applies not only to income but also making sure the | | | | safeguard this reduces the amount of cash on hand at |
| business runs smoothly but that sales are reported | | | | any time. |
| accurately along with minimize loss through theft or | | | | Petty Cash |
| waste. Below are some items a business can keep | | | | Should contain a fixed amount calculated to cover one |
| and eye on to keep things on track. | | | | week, replenished if and when necessary by the |
| Sales Slips | | | | exact amount required for disbursement. Your petty |
| Should be serially pre-numbered in book. Receipts | | | | thief will often start his career by "borrowing" in a small |
| should be obtained from each sales person and an | | | | way from petty cash. Therefore approved vouchers |
| audit of the numerical sequence made weekly. | | | | should be required for all expenditures with amounts |
| Unnumbered sales slips are frequently used to give | | | | written out in ink or type to verify the numerals, a |
| customers receipts for cash sales which are never | | | | safeguard against "kiting." When reimbursed they |
| entered on the records. | | | | should be canceled by a "paid" stamp. Audits of the |
| Cash Collections | | | | petty cash fund should be made at irregular intervals |
| Should be carefully supervised. Prenumbered duplicate | | | | as a surprise, the oftener the better. |
| receipt books should be used and the numbers | | | | Reconciling Bank Accounts |
| audited. Invoices and statements should carry a printed | | | | This should be completed promptly by an employee |
| message to the customer telling him to look for a | | | | other than the one who prepares the deposits or signs |
| signed company receipt on all payments. Receipt | | | | the checks. Delay in the reconciling can cover, |
| books should be audited weekly or more often with | | | | temporarily, fraud, forgery, or alteration by your |
| extra attention to numerical sequence or alterations on | | | | employees or the bank. |
| duplicates. | | | | Physical Inventory |
| Accounts Receivable | | | | If taken quarterly or semiannually, better than annually. |
| Monthly statements should not be routed to customers | | | | Should include spot check of packed boxes, bins, |
| via the collectors. They should be mailed independently | | | | cases, etc. Valuable goods easily pocketed should be |
| so as to cover any discrepancies between collections | | | | kept under lock and key. Losses through pilferage or |
| and records of same. All customer accounts should be | | | | error are common and worth trying to stop by |
| periodically confirmed via either mail or direct contact. | | | | supervision. Regular inventory control can disclose |
| This stops collusion between collectors and the | | | | shortages due to theft or inaccurate accounting. |
| employee who posts accounts receivable. All receipts | | | | Scrap and Waste |
| should be turned in for deposit daily. Duplicate copies of | | | | Unusual variations in disposal should be noted. Sales of |
| deposit slips should be certified by the bank teller and | | | | scrap and waste to junk dealers can be profitable to |
| mailed by the bank to the employee who reconciles | | | | the dishonest seller and the buyer if control is not |
| the bank accounts. | | | | adequate. Old inventory can be sold on eBay at times |
| Disbursements | | | | for company profit. Monitor employees who handle |
| When possible, they should be made by prenumbered | | | | online sales. |