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What are some common methods for the internal control of cash?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

An allowance.
Here are some additional controls
For Cash receipts
> Keeping Cash handling and Book Keeping separate
> Daily deposit of cash receipts
For Cash disbursements
> Making all disbursements by cheque (other than petty cash)
> Keeping the Cheque book under lock and key.
> Sign checks only if adequate documentation is presented
> Have only higher-level personnel sign checks (never the bookkeeper!)
> Prepare bank reconciliations.
> Keep petty cash in a safe place.
> Execute Fidelity bonds on employees in positions of trust, such as book-keepers. (Fidelity bonds are insurance policy taken against the risk of dishonesty by employees.)

First answer by ID1286485448. Last edit by Viki.t.s. Contributor trust: 2 [recommend contributor ]. Question popularity: 31 [recommend question].

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