Financial Education | Importance of internal control analysis for current assets in business entities

Based on the above, the cash count is an important action because cash is part of the group of current assets, made up of currency, banknotes and checks available to the entity to meet its commercial obligations.

Financial transactions as part of current assets must be recorded independently and individually and in chronological order, considering the documents and vouchers that support each transaction, which must contain the date.

Hence, the relevance of establishing the analysis of internal control for current assets in business entities, since current assets are a specific instrument to cancel exclusive cash payments that are assigned to a person responsible for their expenditure and must be available for minor expenditures.

Regarding the bank reconciliation, basically it is a report that results from the realization of a systematic process, where the accounting records that the company has registered in a savings or current account of a bank are compared and reconciled with the values recorded by the bank, reflected in the bank statement, in order to determine the origin of the differences.

According to the above, it is necessary to define a safe methodological process that allows the development of bank reconciliations and at the same time offers security in this process, for this, internal control is very useful for the accounting purposes sought by the entity under study.