As we continue to transition our accounting department into a more integrated model that mirrors our organization, I realize how important full documentation of procedures and processes can be. Larson Design Group has always had good step-by-step accounting documentation such as how to record a vendor’s invoice in our accounting software, etc. However, we have learned that we were weak on system documentation; the things that really matter in making a company run efficiently, effectively and without risk of errors in the big picture.
For example, since LDG conducts approximately 20% of its business with State agencies, their audit standards require thorough review of our systems. In the last few weeks, various co-workers and I have taken the time to document our internal controls in all areas. Yes, it has been a lot of work that came with struggles in finding the right words and preparing numerous documents that ensure everyone understands these procedures. But in the big picture, it shows that in all situations, we can improve. We have looked even closer at segregation of duties within the accounting department and our approval processes. And accordingly we are making changes. The first change we made is that all electronic payments for vendor invoices will now go through an additional review and approval process to ensure more “eyes” see these.
In the end, I am even more confident with the integrity of our data and proud to be part of making these changes happen.