The internal control system of an enterprise is formed from three components: the control environment, the accounting system and control procedures. The presence of this system allows to achieve a well-coordinated work of the organization and improve its financial performance. The creation of a control environment by management implies the organization of the structure and style of management of the enterprise, the distribution of powers and management accounting.
Instructions
Step 1
Form a conscientious attitude among employees towards the performed functions by example. Develop “codes of honor”. Demonstrate your professional competence to employees.
Step 2
Create a clear reporting system, each employee must know their authority and their immediate supervisor. In addition, convey to each employee what he is responsible for and what are the criteria for evaluating the results of his work. Introduce a system of employee reporting for the work done.
Step 3
When forming the accounting system, provide the heads of structural divisions with information on intra-production planning, i.e. who and in what time frame performs a particular task. Focus on profit and cost indicators. At the same time, the growth of profit of any of the divisions should not lead to a decrease in the indicators of the financial efficiency of the entire enterprise. Calculate the profit of each structural unit objectively, regardless of the financial growth of the entire organization.
Step 4
Control procedures are created for the effective functioning of the internal reporting system. Conduct regular checks of structural divisions for the performance of their assigned tasks and the correctness of reports on their implementation. When conducting control, consider all aspects of the activities of the department or individual employee. Create regulations, according to which violations of the tasks set will put at a financial disadvantage both the head of the department and the individual employee. That is, develop a system of de-bonuses.
Step 5
When carrying out control procedures, do not strive for total control over standard current activities, this distracts specialists from solving problems that may affect the financial condition of the organization.
