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Dividing financial responsibilities of the staff

This may not be an easy thing to do, but it is an extremely important step, and you should make it a point to divide financial responsibilities of the staff sensibly.

A couple of benefits of dividing staff responsibilities are:

1.    You will have better management. Although there are people who think that dividing staff responsibilities will add to your cost, but the additional cost is better than handling the management in the hands of few individuals who can destroy your progress by making things inconvenient for you. So, manage things better with divided staff responsibilities.

2.    Prevent internal fraud. This is possible because there will be checks at regular intervals and with different parties in contact, you will notice that internal fraud can be prevented. In fact, dividing staff responsibilities is like an insurance against internal fraud in one’s business.

3.    Know the responsible party. If you divide responsibilities, you will know who is responsible and for what. This means that you will not have to scrutinize everyone, if you are certain that the problem has been noticed at a particular stage, and a specific person or a group of persons are responsible for the mistake. So, think about dividing staff responsibilities, especially in the financial division. With different managers for every division, you will notice that every manager will know their role and even know that someone else in the company will easily know about the fraud, if committed by them. This means that the possibility of fraud will reduce drastically.

4.    Rewarding will be easy too. If you know that a particular division has been really good with its approach towards the responsibilities, you can easily reward them and let others know that if they are good with their given tasks, they will even be rewarded with something good. For the rewards, you can look for a little gift item to make them happy. You can buy it from Chameleonjohn and save even while shopping at Target.com by looking for coupons. Coupons are important for people shopping at online stores like Target.com because the discounts offered at the store are negligible in some cases. However, coupons are good enough and will help you get the right amount of discounts at the right time. So, enjoy additional discounts at Target.com with the help of this trick and keep your staff happy.

 

If you have decided that you will divide staff responsibilities in the financial division, here are some divisions you should work on.

Please note that you can extend or compress the list according to your need.

 

Bookkeepers

This is one of the most basic responsibilities in the financial division but holds importance because the bookkeeper needs to be sure that every transaction is properly recorded, and there has been no mistake in the recordings. Bookkeeper reviews and enters the transactions and is even responsible for the accuracy, validity and authorization of the books of accounts. So, you need to be sure that a separate individual is appointed for this task.

If the number of transactions is huge, you can even consider having more than one individual in this division.

In some companies, bookkeepers are even given the responsibility of handling payments that are received from external parties and payments that are made to external parties.

 

Authorization managers

This is an important division and you need to make it a point to have a professional manager appointed to take care of the responsibilities such as authorizing expenses for various departments, have adequate powers to get work done if it is in favor of the company, etc.

This is an important division because some of the most important decisions are taken by the manager or managers appointed in this division.

There are companies that appoint more than one manager in this department, and the authorization of both of the managers is important for transaction amount that exceeds a certain amount. If this is important in your case, you should appoint more than one manager in this division.

 

Money-handlers

With company’s money in hand, you might notice that this division is so very important. If they manage to get away with their frauds, the company will suffer huge losses. So, this division is important, and you should make it a point to have adequate managers in this division. If possible, you should further segregate teams in this division and let each person handle a certain amount of transaction. Also, not that if a person is responsible for handling money directly, the same shouldn’t be appointed for making bank deposits. This is important because you will be in a position to blame the party who is at fault, just in case a certain sum goes missing. For example, if the amount collected directly is $100, and the amount deposited is $90. The former can blame the latter. However, if the same person is handling twin duties, you might never come across a fraud, until and unless detailed inspection is done in this division.

 

Reporting managers

You should hire professionals for financial report preparation and analysis because it will give you an insight in the records of the books on a daily basis. Financial reporting should be on the shoulders of someone who is not responsible for the daily entry of transactions in the books. This will help you be at peace because you will know that the person responsible will be in a position to catch hold of the fraud and report it to higher authorities at the earliest.

However, this is an issue because small businesses often let the bookkeepers to carry dual responsibilities and thus, regret making the mistake, only after the fraud has been committed. So, if you have the opportunity to prevent the fraud, take necessary steps and prevent it so that there will be no regrets on a later date.

 

Apart from this, which other division do you think one should have in their company when we talk about financial responsibilities?


 
Posted by: Mary Prichard on 16 October 2015

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