• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Submissions
  • About Us
  • Contact Us
  • Mar 23, 2023
  • Startup
    • Creating a Plan
    • Funding a Startup
    • Franchise Center
    • Getting Your Office Ready
    • Making Your Business Official
    • Marketing Your New Business
    • Personal Readiness
  • Run & Grow
    • Customer Service
    • Human Resources
    • Innovation
    • Legal
    • Operations
    • Risk Management
  • Leadership
    • Best Practices
    • Communication
    • Green Initiatives
    • Open Culture
    • Strategic Planning
    • People Skills
  • Sales & Marketing
    • Advertising and Lead Generation
    • Marketing Innovations
    • Marketing Plans
    • Online Marketing
    • Relationships
    • Sales Activities
  • Finance
    • Budgeting and Personal Finance
    • Payments and Collections
    • Tax and Accounting
    • Pricing Strategy
    • Working with Investors
    • Working with Lenders
  • Tech
    • eCommerce
    • Hardware
    • Software
    • Security
    • Tech Reviews
    • Telecom
  • Shop

SmallBizClub

Helping You Succeed

taxbandits banner
Home / Run and Grow / Risk Management / Protecting Your Company: Asset Control
Protecting Your Company: Asset Control

Protecting Your Company: Asset Control

1045 Views

Jun 7, 2017 By TaxConnections

What controls should be put in place to protect the company’s assets from fraud?

Company assets such as inventory, equipment and vehicles are highly susceptible to fraud and need to be protected. Internal controls should be put in place to protect these assets.

Discussion:

Below is a discussion of the controls to be put in place to protect these assets:

  • Inventory:Inventory should be kept in a secure area and access should be limited. An inventory management system should be used to track inventory movement. Inventory should also be counted regularly (annually at minimum) and physical counts compared to internal records. Differences should be investigated.
  • Equipment:Equipment records should be kept detailing purchase dates, cost and serial numbers. Policies should be implemented and followed requiring authorization for offsite use of equipment. Insurance coverage of equipment should be reviewed annually. High value equipment should be kept in secured areas with access limited to authorized individuals. Owner/manager approval should be required for purchase, disposal or sale of all equipment.
  • Company Vehicles:Records should be kept detailing purchase dates, cost and serial numbers. Usage should be restricted to approved employees with clean driver’s abstracts. Mileage logs should be kept. Policies should be put in place to require approval for personal use of company vehicles and pass liability to the individual.

Reviewing the above reports each period will help you identify irregularities and detect fraud.

Recommendation

If you would like to discuss control of your assets and how to protect your company from fraud, get in touch.

Author: Grant Gilmour has been in the CA business since 1988, starting his own practice in 1994. His tax expertise encompasses tax planning, international tax issues, and Scientific Research and Development tax credits. He is a graduate of the CICA In-Depth Tax Course and in 2012, Grant received the CA Community Service Award and the Scout Leader Medal.

Filed Under: Risk Management Tagged With: Assets, Fraud

Source: TaxConnections

TaxConnections

TaxConnections

TaxConnections Worldwide Directory of Tax Professionals is an authority site of tax advisors from around the world. As the leaders in our market vertical, you can find and interact with tax professionals in corporations, law firms, public accounting firms, tax services firms, government and academia in one click. Through our innovative technology, we maximize the exposure of a tax professional’s expertise and services to the more than one billion people who go online for tax advice each year.

Related Posts

  • fraud-is-no-small-businessWhat is Accounts Payable Fraud and How Can Businesses Prevent It?
  • Digital Assets: Opportunities for Entrepreneurial Innovation
  • Everything You Need to Know about Financial Assets

Primary Sidebar

Random

Outsource Legal Services for Affordability

Feb 9, 2021 By Pete Detlef

How to Get an MBA in Entrepreneurship

Jun 25, 2014 By Under30CEO

Why Are Remote Workers Turning to Digital Nomadism? 

Dec 22, 2022 By Angela Ash

How and When to Use Short-Term Business Loans

Feb 28, 2018 By SmallBizClub

How COVID-19 Bolstered the Gig Economy

Sep 8, 2021 By Brian Wallace

Footer

About Us

Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Copyright © 2023 by Tarkenton Institute, Inc. All Rights Reserved | Terms | Privacy