Question

At Just Accounts Pty Ltd both cash and cheques are received daily, usually for amounts totalling approximately $1000. Consistent with your new role as bookkeeper, you have been asked to document some simple steps the company can take to ensure security procedures are in place to handle cash and cheques.

Outline the steps you believe would be appropriate.

Answer 1

Steps I believe would be appropriate are as below:

1. Roles: Describe clearly the roles and responsibilities of each and every individual who handles cash and cheque. This would help in holding the individual accountable to clarify when something goes wrong

2 . Documentation: Once the cheque or cash is received it has to be recorded/ documented in the books of accounts or into the system right away. As a bookkeeping policy there should not be any delay in documentation.

3. Security locker: The received cheque and cash has to be placed in a safe place and hence using an efficient security locker is important. Placing the cheque or cash here and there should come under non compliance.

4. Tally: Use accounting tally systems to debit or credit the amount in order to check the accuracy and avoid mismatches while receiving cash or cheque

5. Banking: Since check or cash has been received on a daily basis it is better to carry on the banking activities the very next day so that they are safe