Creating Business Success Through Control

There are 2 types of Internal Controls: Control Accounting and Administration:• Accounting controls intended to protect the company's assets and ensure the accounting records and financial statements provide the correct information.• Administrative controls intended to ensure the quality of employee performance related to the company's operations and meet all of the rules and applicable law.The main purpose of the controls is to prevent faults and damage and generate efficiencies. Controls should be able to eliminate uncertainty and make the company move forward to achieve its objectives.

Controls include various responsibilities such as: approval, performance evaluation, job description, account reconciliation, verification, authority, passwords, etc. Therein also includes policies related to employee behaviors such as the use of a personal phone, or when the safety of travel, for example.

However, we must know that there is no system that can not collapse. Maybe there is a conspiracy to cover employee embezzlement big or small, regardless of the policy set. Controls can provide a reasonable assurance, but not absolute for management.

When defining control, the company always faced with the reality of limited resource constraints. Control should be monitored and checked by supervisors and managers. So that the benefits of controls must be weighted by the cost of the organization.

When internal controls created with the specific policies and procedures, it should be considered as an ongoing process. Need to be re-evaluated and updated consistently to accommodate internal changes such as the growth of the department.

Control activities should be introduced dipenjuru companies, ranging from top management level to the lower level. Each employee job descriptions should include the responsibility to communicate the operational problems, code violations or illegal activities to superiors quickly so that immediate action is taken.

The best way to ensure an error or malfunction does not occur is to hire the right person. By having employees' competent, honest, and be sure to bring him with integrity, is the best way for owners or managers to be able to sleep soundly.