All right,
let's talk about some examples for internal controls just for cash.
OK.
There's
some pretty straightforward ones.
Effective
internal control
will
protect cash,
and they should meet three guidelines,
OK?
These are what the,
what you should follow when you're
creating
examples of internal controls just specifically for cash.
One is I want to handle cash or the handling of cash
is separate from the recordkeeping.
Again,
that's the most common one is separation of duties.
I don't want the person with custody of it to be
also the one that's doing the record keeping of it.
Again,
you're gonna hear this so many times
this
is just a very important one.
Another one is cash receipts are promptly deposited in the bank.
I don't want to have a lot of cash on hand
that opens the door for theft internally or theft externally
with people coming in and maybe robbing me or something.
When I have cash on hand,
I want to take it to the bank as quickly as I can.
Typically,
you're gonna have...
Well, some
businesses do it twice a day
or at least once a day.
And
then finally,
cash disbursements are made by check or EFT.
Why check or EFT? Because I have
a number that's associated with it.
I don't want to just give somebody cash
because if I give somebody cash,
they can dispute and it's my word over theirs.
I would much rather give them a check,
so I have that paper trail to go back to see who endorsed it,
who,
you know,
cashed it,
who was paid to and all that.
So, those are three
very important guidelines when it comes to
controlling your cash,
internal controls for cash.
Appreciate it.