Financial controls
Essential Financial Controls for Companies with 50–200 Employees
A proportionate control framework for approvals, banking, vendors, payroll, close, access and exception reporting.
In brief
A company with 50–200 employees needs proportionate controls over authority, banking, vendors, customers, payroll, accounting close, tax, systems access and exception reporting. Controls should be practical, assigned to named roles and supported by evidence—not copied from a larger organisation without regard to the actual risks.
Start with authority and segregation
The company should define who may initiate, prepare, review and approve material activities.
- Document approval limits for purchasing, contracting and payments.
- Separate vendor creation, invoice processing and payment approval.
- Review conflicts where small teams require combined responsibilities.
Protect banking and master data
Bank access and changes to customers, vendors, employees and accounting masters can create concentrated risk.
- Use maker-checker banking controls and individual credentials.
- Require independent approval of bank-detail changes.
- Review dormant users and access after role changes or departures.
Build controls into the monthly close
Reconciliations, period-end review and exception reporting help detect incomplete or unusual activity.
- Assign ownership for every material balance-sheet account.
- Review unusual journals, ageing and manual adjustments.
- Track open items until evidence of resolution is available.
Monitor evidence and exceptions
A control is only dependable when its performance can be demonstrated and exceptions are escalated.
- Retain approval and review evidence proportionate to the risk.
- Report recurring exceptions and overdue actions to management.
- Reassess controls when systems, people, locations or transaction volume change.
Official references
Use current primary sources when evaluating a live requirement. Portal procedures, regulations and professional guidance change.