A small business owner typically can’t afford to hire enough people to have proper separation of duties to gain the internal controls needed to prevent accounting fraud. However, every business owner can achieve accounting fraud prevention by taking these simple steps:
1. Open the bank statement yourself
Every small business owner should receive the [...]
One of the critical keys to managing your company’s receivables is to measure and control your Day Sales Outstanding, the average number of days your company takes to collect sales revenue. Treat a high DSO number as a red flag — it means you’re taking too long to collect revenue and extending credit to customers [...]
Overdue receivables obviously have a major impact on your company’s cash flow. If you don’t have a clear, detailed, firm credit policy in place, expect customer confusion, resentment, and an ever-increasing gap between your receivables and your payables.
Credit Where Credit Is Due
To whom will you extend credit, and how will they qualify? Small businesses should [...]