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All right,

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let's talk about some examples for internal controls just for cash.

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OK.

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There's 

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some pretty straightforward ones.

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Effective

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internal control

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will

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protect cash,

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and they should meet three guidelines,

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OK?

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These are what the,

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what you should follow when you're

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creating

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examples of internal controls just specifically for cash.

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One is I want to handle cash or the handling of cash

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is separate from the recordkeeping.

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Again,

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that's the most common one is separation of duties.

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I don't want the person with custody of it to be

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also the one that's doing the record keeping of it.

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Again,

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you're gonna hear this so many times

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this 

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is just a very important one.

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Another one is cash receipts are promptly deposited in the bank.

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I don't want to have a lot of cash on hand

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that opens the door for theft internally or theft externally

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with people coming in and maybe robbing me or something.

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When I have cash on hand,

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I want to take it to the bank as quickly as I can.

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Typically,

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you're gonna have...

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Well, some 

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businesses do it twice a day

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or at least once a day.

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And 

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then finally,

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cash disbursements are made by check or EFT.

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Why check or EFT? Because I have

41
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a number that's associated with it.

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I don't want to just give somebody cash

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because if I give somebody cash,

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they can dispute and it's my word over theirs.

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I would much rather give them a check,

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so I have that paper trail to go back to see who endorsed it,

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who,

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you know,

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cashed it,

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who was paid to and all that.

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So, those are three

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very important guidelines when it comes to

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controlling your cash,

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internal controls for cash.

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Appreciate it.