Guide to Establishing Internal Financial Controls

Check your processes first

Short of being a CPA, it's rare that small business owners adequately track what's going on in their own company — until they grow, but by then it's hard to start.

I recommend: The U.S. Small Business Administration has an online checklist of essential internal controls. Copedia offers spreadsheets predesigned for tracking financials within a small business. Bizmanuals sells a soft-cover book that comes with a CD of controls templates.

A shrink-wrapped box from the office store could save your company

Many thousands of small companies find off-the-shelf software running on a PC is enough – learned in a few weekends or with the help of a part-time bookkeeper – to move from shoebox accounting to tracking, reporting and less stress at tax time.

I recommend: By far the most popular software at this level has been QuickBooks. Intuit, the publisher of QuickBooks, maintains a free training site, too.

Getting into the (sort of) big leagues

If you've longed moved on from a handful of spreadsheets, and especially if you have multiple offices or several managers empowered to make financial calls, it makes sense to consider what is now called enterprise resource management (ERP) software.

I recommend: Oracle, SAP, Sage, Microsoft, Intacct, Everest and NetSuite all sell small to medium-sized business versions of their accounting and controls software. Often, it can be Web-based — no need to buy servers!

Send it out completely

Payroll processing companies have moved upstream into tracking all manner of compliance and controls, including hiring (and firing), benefits, retirement and so on.

I recommend: Among the largest of these service providers is ADP.