Internal controls are not reserved for large corporations. In an owner-managed business, a few deliberate hand-offs can reduce errors, clarify accountability and protect the owner from becoming the only person who knows how everything works.
Map the sensitive points
List cash receipts, vendor setup, payments, payroll changes, refunds, journal entries and user access. Identify where one person can initiate, approve and complete the same action.
Add lightweight review
Require a second look for new vendors, unusual payments, material journal entries and changes to bank or payroll information. The review can be simple; it needs to be consistent and documented.
Design for real capacity
A small business may not have full segregation of duties. Compensating controls such as owner review, bank alerts, monthly reconciliations and CPA-supervised checks can reduce the exposure.
Key takeaways
- Map where one person can complete a sensitive action.
- Use consistent second-review points.
- Design compensating controls for small-team reality.
A clear next step
Lago Mayor can review accounting procedures, approval workflows and financial controls with a practical lens.
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