Bank Reconciliations & Cash Internal Controls

Mastering Internal Controls and Cash Management: Safeguarding Business Assets and Ensuring Financial Accuracy

Created by: Robert (Bob) Steele
CPA, CGMA, M.S. Tax, CPI

What Will I Learn?

• Analyze the significance of internal controls in accounting: components, segregation of duties, authorization procedures, and physical safeguards.
• Evaluate the effectiveness of cash receipts internal controls by examining procedures for recording, documenting, and safeguarding cash inflows.
• Assess cash disbursements internal controls in mitigating risks, including purchase order systems, approval processes, and vendor payment verification
• Perform a comprehensive bank reconciliation to identify and resolve discrepancies between the bank statement and cash records.
• Develop and implement procedures for efficient petty cash management, including reimbursement, documentation, and periodic reconciliation.
• Explain the impact of the accounting cycle on cash management, including the interrelationships between cash transactions and other accounting processes.
• Define key terms related to internal controls and cash management, such as internal audit, segregation of duties, cash equivalents, and float.
• Interpret financial statements to assess the accuracy of cash balances and the effectiveness of internal controls over cash.
• Demonstrate proficiency in utilizing software tools and technologies to enhance cash management and internal control processes.

Requirements

• Basic understanding of accounting principles: Familiarity with concepts such as debits, credits, financial statements, and the general accounting process.
• Computer and internet access: Ability to use a computer or device with internet connection to access the course materials and participate in online activities.
• Math skills: Proficiency in basic arithmetic operations (addition, subtraction, multiplication, and division) to perform calculations related to cash management and internal controls.
• Willingness to learn: Openness and eagerness to acquire knowledge and skills in the areas of internal controls and cash management, regardless of prior experience or background.

Target audience

• Students: Accounting students who want to enhance their knowledge of internal controls and cash management concepts.
• Professionals: Working professionals in the accounting field who wish to strengthen their skills in internal controls and cash management.
• Entrepreneurs and Small Business Owners: Individuals who want to improve their understanding of cash management practices and internal controls to effectively manage their business finances.
• Anyone interested in Accounting: Those who have a general interest in accounting and want to expand their knowledge in the areas of internal controls and cash management.