Internal controls should fit the business—not overwhelm it.
A growing SME may initially rely on one trusted employee to manage purchases, supplier payments and accounting records. As transaction volumes increase, that arrangement can create avoidable risk.
Management should be able to answer:
- Who requested and approved the purchase?
- Was delivery independently confirmed?
- Were the invoice and supplier details verified?
- Who authorised the payment?
- Was the transaction reconciled and reviewed?
The purpose is not bureaucracy. Clear responsibilities and basic independent checks help prevent errors, protect cash and improve confidence in financial reports.
Good financial management depends not only on producing figures, but also on having reliable processes behind them.