Abstract: Internal controls of accounting are an essential
business function for a growth-oriented organization, and include the
elements of risk assessment, information communications and even
employees' roles and responsibilities. Internal controls of accounting
systems are designed to protect a company from fraud, abuse and
inaccurate data recording and help organizations keep track of
essential financial activities. Internal controls of accounting provide a
streamlined solution for organizing all accounting procedures and
ensuring that the accounting cycle is completed consistently and
successfully. Implementing a formal Accounting Procedures Manual
for the organization allows the financial department to facilitate
several processes and maintain rigorous standards. Internal controls
also allow organizations to keep detailed records, manage and
organize important financial transactions and set a high standard for
the organization's financial management structure and protocols. A
well-implemented system also reduces the risk of accounting errors
and abuse. A well-implemented controls system allows a company's
financial managers to regulate and streamline all functions of the
accounting department. Internal controls of accounting can be set up
for every area to track deposits, monitor check handling, keep track
of creditor accounts, and even assess budgets and financial statements
on an ongoing basis. Setting up an effective accounting system to
monitor accounting reports, analyze records and protect sensitive
financial information also can help a company set clear goals and
make accurate projections. Creating efficient accounting processes
allows an organization to set specific policies and protocols on
accounting procedures, and reach its financial objectives on a regular
basis. Internal accounting controls can help keep track of such areas
as cash-receipt recording, payroll management, appropriate recording
of grants and gifts, cash disbursements by authorized personnel, and
the recording of assets. These systems also can take into account any
government regulations and requirements for financial reporting.