Running a small or medium-sized business comes with its unique set of challenges. This is especially true when it comes to managing finances. One of the fundamental tools you can use to ensure financial transparency, accountability, and integrity is an internal accounting control called: Segregation of Duties (also known as SoD or separation of duties).
Let’s explore the significance of the segregation of duties including practical examples of how it works. We’ll dive into why you need a separation of duties policy, especially when dealing with cash, be it depositing cash, cash receipts, or managing petty cash. We’ll also touch upon tools that can help you such as a Segregation of Duties matrix.Continue reading