Data of Internal Controls for Small Business

Interviews with many successful small firm owners reveal that they usually divide their management information into two categories:

(1) data that they analyze daily, weekly, or monthly, and (2) long-range data that they check less often or whenever the occasion presents itself.

All of this essential data of internal controls for small business are mentioned below:

Essential data of internal controls for small business

[A] First category trends

1. Sales data and trends
2. Effectiveness of producers against shoplifting and theft
3. Suggested new products or new lines
4. Weekly results compared with weekly break-even chart
5. Public relations effectiveness
6. Production records
7. Cash position and cash flow outlook
8. Inventory data and the need for change
9. Price policy questions that may have arisen
10. Policy violations and need charge
11. Price policy questions that may have arisen

[B] Second category includes

1. Adequacy of accounting data
2. Personnel policies
3. Outlook for expanding or contracting operations (these aspects of planning and forecasting are a continuing concern at all times)
4. Effective measure in adjusting to seasonal variations
5. Review of lease arrangements
6. Review of location and site values
7. Study of broader economic data and local developments that might affect expectations for the faro-
8. Possible changes in the legal form of the organization
9. Additions asset needs that might improve efficiency
10. Adequacy of risk coverage
11. Efficiency in purchasing and possible new scorches of supply

The priorities given to the various items on any list will vary with the other demands upon his or her time and the circumstances of the particular- firm. For example, a small private water company would not need to check income records often.

A restaurant would need this data almost daily. A small department store would need regular data at least weekly on a new department that just opened. Owners would be more concerned with inventory movement and inventory control in style goods departments

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