Simple Financial Controls for Growing Businesses
Simple Financial Controls for Growing Businesses
I talk to a lot of business owners who think "proper financial controls" means they need enterprise-level software, a dedicated finance team, and approval workflows that would make a multinational corporation proud.
They're already stretched thin managing a growing business. So the thought of implementing "controls" feels like adding a whole new layer of bureaucracy they haven't got time for.
But I want to set the record straight, and show you how simple, effective and freeing financial controls can be. I work with a lot of businesses at your stage, so I can say with confidence that you’re probably already doing a lot of things right. You check the bank balance before making big purchases and consider the immediate cash out window. You ask your team whether invoices have been paid. You review what went out last month when something feels off.
The problem isn't that you're doing nothing. It's that these things happen reactively or randomly, when you remember or when something prompts you. And that inconsistency is where problems slip through.
Good financial controls for say a 10 -30 person business aren't complicated. They're about making the sensible things you already do happen systematically instead of occasionally.
What "Controls" Actually Means (When You're Not a Corporation)
Let's be clear about what we're talking about here.
Financial controls, in a business your size, simply mean: who does what, when, and how do you know it's been done?
It doesn’t mean you don't trust people, and it’s not just red tape.
You've already got controls in place, even if you don't call them that. When you check the bank balance before committing to a large purchase, that's a control. When you ask, "Did that supplier invoice get paid?" you're implementing a control. When you sit down at month-end and review what went out, that's a control too.
The difference between what you're doing now and what I'm suggesting is moving from random to regular. Right now, these checks may only happen when you think of them, when you've got a spare moment, or when something feels off. So what happens when you're busy? When you're dealing with a client crisis? When you're away for a week?
That's when things slip through.
I worked with a professional services firm who discovered they'd overpaid a software supplier by £8,000. Not through any dishonesty, but simply because the invoice had been paid twice, four months apart, and nobody had a systematic process for checking whether invoices had already been settled before processing payment.
Four months. £8,000. Just sitting there, unnoticed.
The inconsistency made the problem invisible until someone happened to be reconciling supplier statements and spotted it. They got the money back eventually, but it took months of awkward conversations and it tied up cash flow they needed elsewhere.
That's what happens when controls are reactive instead of systematic.
The Three Controls That Matter at Your Size
You don't need twenty different controls. You need three good ones that catch 80% of problems before they become expensive.
1. Separation of Duties (Without Hiring Two People)
This sounds formal, but the principle is straightforward: the person who processes payments shouldn't be the same person who approves them.
In a small team, this doesn't mean hiring a finance department. It means your admin person or bookkeeper prepares the payment, and you (or another director) approve it before it goes out. If you've got two directors, one prepares, the other reviews. Even if you're handling everything yourself right now, your accounting software can require a second login to authorise payments.
Most banking apps and accounting platforms have this built in. It takes about ten minutes to set up.
Why does this matter? Two reasons.
First, it catches honest mistakes. Someone codes an invoice to the wrong account, enters the wrong amount, or processes a duplicate payment. A second pair of eyes spots it before the money leaves the building.
Second, it removes temptation. I'm not suggesting your team are dishonest. But proper controls protect everyone. They protect you from losses, and they protect your team from ever being in a position where they could be accused of something.
One of my clients discovered a duplicate supplier payment when the second signatory questioned why they were paying the same invoice twice. Not fraud, or incompetence. Just a genuine mistake that would have cost £3,500 if there hadn't been a second check in the process.
2. Regular Full Reconciliation
Reconciliation means checking that what you think happened did happen. You may think you’re doing it, but there’s a good chance you’re only doing half a job.
Monthly bank reconciliation should take about 30 - 60 minutes if you're keeping on top of transaction coding. Firstly, you’re matching what your accounting software says to what the bank statement shows. If there's a difference, you find out why.
Now, the bit most people miss is checking other elements, such as reconciling items, or accounts payable and receivable.
Quarterly supplier statement checks catch things like missed invoices, credits you haven't claimed, or duplicates you haven't spotted. You're comparing what your records say you owe to what the supplier says you owe.
A simple monthly cashflow check, money in versus money out versus what's left, gives you early warning of everything from fraud to cashflow crunches.
This isn't complicated stuff, but it does need to happen fully and regularly, not just when you remember or when something feels wrong.
The good news is most accounting software can flag discrepancies automatically. You're not manually checking every transaction. You're reviewing what the system has highlighted as unusual.
Plus, I’m sure you’d rather spend 30-60 minutes a month and catch things early, than a whole day every 6 months and tearing your hair out over old discrepancies… right?
3. Documented Processes (Even Just Basic Ones)
Write down how things should happen.
Not a 20-page manual. A simple flowchart or one-page document that covers:
- Purchase orders: When do you need one? Who approves what value?
- Payment runs: Who checks invoices are valid? Who approves payment? When does this happen?
- System access: Who can access which financial systems? Who approves new users?
This matters for three reasons.
First, it eliminates "I thought you were handling that" situations. Everyone knows what they're responsible for.
Second, when you hire someone new or cover for someone on holiday, they know what to do. The process doesn't live in one person's head.
Third, you can spot when something's happening off-process. If a payment goes through without following the documented approval route, that's a red flag worth investigating.
Keep it simple. One page that says "invoices over £500 need director approval before payment" is better than a complex manual nobody reads.
Why This Isn't About Not Trusting Your Team
I know what some of you are thinking: "We're a small team. We trust each other. This feels like we're treating people like criminals."
Let me reframe that.
Good financial controls protect your team as much as they protect you.
Your staff will appreciate clear processes because it removes the guesswork. They're not left wondering "am I doing this right?" or "should I have checked with someone first?" They know exactly what's expected.
It also protects them if something goes wrong. If there's ever a question about a transaction, the process shows they followed the correct procedure. They're not in a position where they could be accused of something.
I live off-grid in Derbyshire. I trust my solar panels and wind turbine completely, but I still check the battery levels regularly, because that's just sensible system management… and if there’s a problem, I want to know before all the power goes out!
Professional businesses have professional processes. It's not personal.
What "Doing Something" Looks Like
Now, I’m not about to suggest spending tens of thousands on software or hiring a full finance team, so don't panic. It's more about recognising where you're working harder than you need to.
Sometimes it's as simple as:
- Setting up recurring invoices so they go out on time, every time, without you having to remember
- Connecting systems so you're not manually transferring transactions and data
- Creating a straightforward approval process so you're not the bottleneck for every single purchase
- Building templates so you're not reinventing the wheel each month
The goal isn't to remove yourself entirely from the business. It's to free yourself from the repetitive, low-value stuff so you can focus on the decisions and actions that move things forward.
Getting Started Without Disrupting Everything
You don't need to implement everything at once.
Here's a phased approach that won't disrupt your business:
This month: Implement dual approval for payments over a threshold you choose. Maybe £500, maybe £1,000, depending on your business. Use your banking app or accounting software to require two sign-offs.
Next month: Set a recurring date for monthly bank reconciliation. First Tuesday of every month, whatever works for you. Put it in the diary and stick to it.
Following month: Document your purchase order process. Just one page, don’t overcomplicate it. Who needs to approve purchases over what value before they're committed?
Start with one control, get it working smoothly, then add the next one.
You're probably already using tools that make this easier. Most business banking apps have built-in approval workflows. Accounting software like Xero or QuickBooks has reconciliation tools and user permission settings, so it’s unlikely you need anything new.
A 15-minute weekly review meeting catches most issues early. You and whoever handles your bookkeeping, just a quick run-through of what's gone out, what's coming in, and anything unusual.
If you're not sure what the right thresholds are for your business, or how to design processes that fit how you work rather than some textbook ideal, that's the kind of thing I help clients with. Setting up controls that make sense for a 20-person manufacturing business is different from what works for a 10-person marketing agency, and I can help you tailor it accordingly.
These Controls Are Also Your Fraud Prevention Foundation
Everything I've described here makes fraud much harder.
Separation of duties means one person can't process and approve fraudulent transactions. Regular reconciliation means unusual activity gets spotted quickly. Documented processes mean you notice when something happens off-script.
I'm running a webinar with IT expert Phil Davenport from Affirm IT in March that goes deeper into specific invoice fraud risks and how IT and Finance can work together to protect against them. It’s a value-first event, not a pitch slap, so I can assure you it will be worth your while attending.
Where To Start
You don't need a perfect system tomorrow.
Tackling this stuff can feel big or overwhelming, and when you’re already busy, it’s easy to put it off until ‘things calm down a bit’. But we both know, things never really calm down, do they? There's always another client deadline, another team issue, another growth opportunity demanding attention.
So my advice is, pick one control that addresses your biggest current worry.
Is it the nagging concern that you don't spot mistakes quickly enough? Start with regular reconciliation.
Is it the lack of clear approval processes? Document who signs off on what.
Is it the "what if" scenarios about someone making a costly error? Set up dual approval.
One simple control, implemented this week, compounds. It catches small problems before they become large ones. It gives you confidence that you know what's happening with your money. It frees up the mental energy you're currently spending on worrying about what you might have missed.
Controls provide confidence.
Confidence that you know what's happening with your money. Confidence that your team knows what's expected. Confidence that you'll spot problems before they become crises.
And that confidence? That's what lets you focus on growing your business instead of constantly firefighting financial surprises.
© All 2025 All rights reserved. Website Design by Peak Media Marketing