The Business Society Podcast

What Are Internal Controls (And Why Are They Overlooked)?

February 14, 2022 Melissa Houston Episode 88
The Business Society Podcast
What Are Internal Controls (And Why Are They Overlooked)?
Show Notes

“Your business is your biggest financial asset, and you need to be sure that you are protecting it.”

—  Melissa Houston


Is your business protected against fraud or data security risks… from the inside?


This solo episode of the Business Society Podcast is all about implementing internal controls in your business and lessening the risk that your assets and information could be misused.


If you’re wondering what internal controls are — and why having them will benefit your small- or medium-sized business — then you’ve come to the right place!


Internal controls are protective practices that you can build directly into your processes. They’re a vital part of your business, no matter whether you’re operating out of a brick-and-mortar shop or exclusively online. As you scale your business, you’ll inevitably need to grow your team — and as your team grows, so do your risks.


Internal controls help you to protect your business against financial asset threats, financial fraud (including skimming, financial statement fraud, payment tampering, and billing fraud), IT risks, data security risks, and more.


When business owners step away from the financial systems in their business, their absence increases their risk of fraud committed by their own employees. While no one likes to believe that their team is a risk, implementing internal controls lets you run your business with more confidence and security! 


In‌ ‌this‌ ‌episode,‌ ‌you’ll discover:‌ ‌

  • The top 3 primary control weaknesses that contribute to incidents of fraud 
  • 5 tips to help you protect your business from internal risks
  • The aspects of your business that you should be monitoring regularly

  

Highlights:‌

01:04  Happy Valentine’s Day!

02:16  Intro

03:08  Listener shout-out

05:09  What are internal controls?

06:25  The risks you may be facing

09:53  What are internal controls?

11:12  Checks & balances

12:04  IT general controls

13:26  Review your numbers regularly

14:04  Dane Cook story

15:28  Physical controls over tangible assets

16:47  Outro

 ‌

Links:‌ ‌

  

The Business Society: https://thebusinesssociety.co   

5-Step Roadmap to Biz Finance Freedom: https://melissahoustoncpa.lpages.co/5-step-biz-finance-roadmap

Work with me: https://www.melissahoustoncpa.com/work-with-me

Want more tips and inspiration? 

Follow me on Twitter @melissahcpa and Pinterest @melissahoustoncpacga 

and visit my website: https://www.melissahoustoncpa.com

Need a Fractional CFO?  Check out The Fractional CFO Agency!