Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsProcedureAct againstundesirableperformanceReduce exposureto risksEnsure properfinancial reportingDescriptionsAuthorise a formal method of dealing with fraud,dishonesty or incompetence when detected.Minimise the chance of unexpected events.Maintain accurate and complete reports, andminimise time lost correcting errors and ensuringresources are correctly and effi ciently allocated.TIPGood fi nancial controls will protect your investment in the business andensure that the business runs more effi ciently, resources are not lost andthere are fewer unpleasant surprisesFinancial Controls ChecklistTo manage the risk of a fi nancial transactionprocessing failure, manual or automatedcontrol procedures should be implemented atkey stages of the process.Some of the questions that can be asked are:• How well are the fi nancial aspects of thebusiness managed?HINTUsing the checklists willhelp you to determinewhich fi nancial controls arerelevant for your business,and highlight the areaswhere you can improveyour fi nancial controls• Are the business operations protecting theorganisation against disasters, internal theft and unfavourable external audits?• How comprehensive are the management practices?• Are the fi nancial records truly accurate?161chapter 7-13 p79-181 Eng.indd 1618/15/11 5:03:09 PM