Controls are not about distrust. They are about making the right behaviour the easy behaviour.
Why small businesses need controls too
In a small team, one person often handles ordering, payment and record keeping. That is efficient and it is also where most errors and losses originate — usually through mistakes rather than dishonesty.
Controls that fit an SME
These are realistic for a team of five to fifty.
- Separate who approves a payment from who makes it
- Require evidence before reimbursement
- Reconcile the bank monthly, reviewed by the owner
- Set spending limits by role
- Review the supplier list periodically
Introduce them gradually
Introducing five controls at once tends to fail. Start with reconciliation and approval separation, then build. Controls that are ignored are worse than no controls, because they create false comfort.
Want this handled properly in your business?
SENK provides accounting, tax compliance, advisory and training support for Nigerian SMEs.