Implementing robust internal controls and oversight mechanisms is crucial for maintaining financial integrity within Fathers On A Mission (FOAM) . Below is a structured guide to establishing these controls in QuickBooks Online (QBO) , accompanied by verified video tutorials for each step.
1. Segregation of Duties
Objective: Ensure that no single individual has control over all aspects of financial transactions to prevent errors and fraud.
Steps:
1. Assign Distinct Roles: o Transaction Entry: Designate a staff member responsible for entering financial transactions into QBO. o Bank Reconciliation: Assign a different individual to reconcile bank accounts, ensuring they do not have transaction entry privileges. 2. Implement Approval Processes: o Payment Approvals: Establish a policy requiring dual authorization for payments exceeding a specified threshold (e.g., $2,000). o Digital Approvals: Utilize QBO’s approval workflows to document and manage payment authorizations.
Video Tutorial:
• For guidance on setting up internal controls in QBO, watch:
A System of Internal Controls in QuickBooks
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