{"id":32,"date":"2023-07-19T17:36:10","date_gmt":"2023-07-19T17:36:10","guid":{"rendered":"https:\/\/www.thinkastute.com\/blog\/?p=32"},"modified":"2023-11-26T08:34:32","modified_gmt":"2023-11-26T08:34:32","slug":"secure-your-accounts-payable-with-robust-internal-financial-controls","status":"publish","type":"post","link":"https:\/\/www.thinkastute.com\/blog\/secure-your-accounts-payable-with-robust-internal-financial-controls\/","title":{"rendered":"Secure your Accounts Payable with Robust Internal Financial Controls!!"},"content":{"rendered":"

Accounts Payable (AP) is an integral part of accounts and finance function and sensitive in terms of cash management. It is imperative to maintain the AP to the utmost completeness, correctness, and compliances with regulatory requirements.<\/strong><\/p>\n

However, AP is prone to various risks. It is critical to identify those, so you can anticipate and not get duped or suffer losses in your business.<\/p>\n

Some of these risks are:<\/strong><\/p>\n

    \n
  1. Unintentional manual errors like over payment<\/li>\n
  2. Payments to wrong accounts or of wrong amounts due to oversight<\/li>\n
  3. Conflict of Interest<\/li>\n
  4. Collusion<\/li>\n
  5. Lack of Audit Trail<\/li>\n
  6. Delayed payments<\/li>\n
  7. Missed accruals or errant forecasts<\/li>\n<\/ol>\n

    The way to mitigate these risks is strong internal financial controls for the AP process. A solid internal controls program can improve operational efficiency and provide accurate financial reporting<\/strong>. A robust internal control seeks to maintain financial transparency and accountability.<\/p>\n

    The major internal control checkpoints can be categorized as manual controls and system controls.<\/p>\n

    Manual Controls are:<\/strong><\/p>\n