Internal financial control at the enterprise

For what purpose is on-farm financial control organized? What does the mechanism for its implementation look like? Are there any nuances here, and if so, which ones?

general information

In order to carry out successful activities, increase profitability, preserve and increase assets, any organization needs to have a well-functioning management mechanism. In this case, an on-farm (internal) financial control plays a very important role. The leadership of any organization is interested in the effective work of both individual structural units and employees. Moreover, the latter deserve special attention, since the success of the entire organization depends on the conscientious fulfillment of their duties. On-farm financial control is carried out precisely to ensure that everything is going according to plan. And if violations or deviations are identified, management will need to make a decision (maybe even more than one) to stabilize the situation, and possibly even to reach a new level. After all, problems are not only difficulties, but also opportunities.

What is he like?

Under internal control, they present a system of constant monitoring, as well as verification of the organization's work, in order to assess the validity and effectiveness of the management decisions that have been made. Also, his tasks include identifying deviations, adverse situations, timely informing management (in order to make a decision on the elimination of shortcomings), reducing the risks of activity. Thus, we can say that internal control is a specific form of feedback, thanks to which the organization’s governing body can count on obtaining the necessary information about the current state of the subordinate facility for implementing the decisions made. But for everything to work efficiently, it is necessary to build an adequate system.

What are the goals?

The organization of intraeconomic financial control largely depends on what tasks are being pursued. Different authors give different goals to be achieved. Within the framework of the article, the list proposed by V.V. Burtsev will be presented:

1. The compliance of the organization’s activities with the formal course of action (which includes benchmarks and targets) and the adopted strategy.
2. Financial and economic, market and legal stability.
3. The orderliness, structuredness and effectiveness of ongoing financial and economic activities.
4. Ensuring the safety of the property of the organization, including the data that is used in management.
5. Primary documents should provide the necessary level of accuracy and completeness of information. This is necessary for making adequate, effective and necessary management decisions.
6. A high quality accounting work should be achieved. This refers to data completeness, temporal certainty, formalization, and accuracy.
7. It is necessary to ensure the growth of labor productivity, reduce costs and improve the financial and economic results of practical activities.
8. Officers must comply with the requirements, rules and procedures established by the administration. All necessary information should be provided for in the regulations on the unit, job description, rules of conduct, recommendations on the preparation of documentation and workflow, plans for the organization of labor, orders on accounting policies, as well as other necessary orders.
9. Comply with federal laws, by-laws, and local government.

What is included in the system?

Internal financial control is divided into: environment and control procedures, as well as the accounting system. It is understood that in all cases there are certain rules, methods, regulations and documentation that will help achieve your goals. The end result is risk reduction in financial and business activities, accounting, and management is able to have up-to-date information on the situation. And now it is organized in such a way that access to data can be made from anywhere in the world and anytime. Let's look at the constituent elements in more detail.

Environment and control procedures

What and how does it work? Under the environment understand the totality of actions, activities and procedures with which you can reflect the overall attitude of the owners and administrators of the organization to the issues of control and its significance. It is formed by such constituent elements: basic principles and management style, distribution of powers, as well as responsibilities, organizational structure, work with personnel, management methods of control and external factors.

Procedures are not in vain rendered separately. Such attention was paid to them because of the need to trace whether data on all carried out business operations were entered into accounting registers. After all, there is always a chance that a document will be lost, incorrectly sorted, etc. For this, numbering, verification of data processing using checksums and coordination of information from different sources are carried out.

Accounting system

This is the name of a certain set of procedures aimed at collecting, registering, processing and presenting data on available assets, liabilities and ongoing business operations. This ensures the completeness, reality and timeliness of operations, as well as their correct assessment, classification and generalization. For effective work, you must take care of:

1. Accounting policies, as well as the basic principles according to which accounting will be conducted.
2. The organizational structure of the unit that is responsible for collecting and processing data.
3. The distribution of duties, powers and responsibilities between employees.
4. Organization of preparation, use and storage of documents that reflect business operations.
5. The order of reflection of operations in accounting registers and forms.
6. The role of computer technology in accounting, as well as in reporting.
7. Critical areas of work where there is a high risk of distortion or even error.
8. Means of control that will work as part of the accounting system.

Who performs the assigned functions?

On-farm financial control at the enterprise is carried out either by a specially trained person, or even a whole unit, which checks and analyzes all the documentation. From time to time, the leadership of the organization can take on this role. If the company is part of a holding or association, then the inspection can be carried out by the main or parent company. By the way, if you are interested in how the state relates to this, it should be noted that the current state of affairs can be described as a stage in the creation of this important aspect. So, now the law does not fix the basis for the functioning of services, which will be entrusted with internal control. Also, the basis for their interaction with other units has not been developed.

Is everything so bad?

Not. Non-state control worked out very well. What exactly? It includes: audit, public control and the object of consideration in the framework of the article. By the way, no matter how they were scolded, departmental and on-farm financial control in tandem are necessary elements of the company’s work.Why? First, let's look at the concept of "departmental." This is called control, which is carried out by a higher organization. That is, if certain reels begin to be observed inside, then such a system for identifying problem areas allows them to be detected and eliminated even before significant development and amplification. Alas, in practice, everything is not always smooth, but what can I do.

Conclusion

Of course, control is an important structural element of any organization that wants to be successful and prosper. But at the same time, it is necessary to find a middle ground in which there will be no connivance to abuse and at the same time it will be possible to do without tightening the screws, in which a piece of paper is required for everyone.

The optimal solution at the moment is the use of enterprise management systems. They have a fairly wide range of functions, starting with support for employee time tracking to full-fledged accounting modules. At the same time, on-farm financial control at the enterprise turns out to be complex, and due to automation means, data transfer is also accelerated. It is possible that sometime in the near future this will generally allow us to avoid the use of paper as evidence in operations.