Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsThis checklist will help you to review your business’s fi nancial controls.A business with good fi nancial management practices would answer "yes" tomost of the following questions:GeneralIs a chart of accounts used?YES/NOIs it detailed enough to give adequate managementinformation?Is a double-entry bookkeeping system used?Are journal entries used?Are journal entries approved?Do you use budgets and cash projections which are:• compared to actual results?• investigated if there are major discrepancies?Do you understand the form and contents of the fi nancialstatements?Are comparative financial statements produced andreviewed?Are the books and records kept up to date and balanced?Is fi nancial information produced regularly?Are reasonable due dates imposed for preparation offi nancial information?Are storage facilities safe from fi re etc.?Is insurance coverage regularly reviewed?Is there a records-retention schedule used?162chapter 7-13 p79-181 Eng.indd 1628/15/11 5:03:09 PM