PPB April 2018

reports, payroll data, deposit records, variance reports and other data on a regular basis. User Access Rights For Information Systems If you read the news, you hear about it all the time. Big companies get their systems hacked and they lose data—or, more frightening, others gain access to that data. Your business is probably similar in the way that youmaintain most of your company’s valuable information electronically. Your team members should have appropriate access to the information they need to conduct their responsibilities—and nomore. As their responsibilities increase, so should their access rights to additional information. The access rights of your teammembers should be reviewed periodically to ensure they are appropriate for their current position. Business owners often provide toomuch access too soon to teammembers, and it can expose their business to additional risks and potential fraud. Proper internal controls are essential to all businesses in any industry. Your business is no different. This article touches on a few key areas to focus on in establishing effective internal controls, but don't stop here. Speak with other business owners, managers and accounting firms about their internal controls. Many accounting firms have experienced risk advisors who can establish and review your internal controls and provide further guidance. Implementing and reviewing these internal controls is extremely important for your business to effectively prevent or detect fraud and reduce financial risk. Greg Muzzillo founded distributor Proforma in 1978. Within five years he grew the company to several million in sales, and by the mid-1980s Proforma had been recognized by Inc . magazine as an Inc. 500 fastest-growing company. In the late 1980s Proforma introduced its membership program to enable distributors to retain their business ownership and independence. Today, Proforma has more than 700 members with $500 million in sales. Proper internal controls are essential to all businesses in any industry. Your business is no different. 68 | APRIL 2018 | THINK