Episode 6 - Box 5 Internal Controls

Internal controls are the procedures and methods used to help companies to achieve their performance and profitability targets and prevent the loss of resources/assets. They are also used to ensure financial reporting is accurate and reliable and that companies are compliant with regulations and laws. In other words, internal controls can help your company achieves its goals, and limit the internal and external risks and threats you’re likely to encounter. Every business will feel the pain of not being in control at some point in the growth cycle and, therefore, implementing internal controls in a measured and methodical manner will become essential at some stage. It’s better to establish internal controls now rather than continuing to trade without them. Not only do they give you more time and freedom but they enable you to manage and control the business rather than allowing the business to control you.