For entrepreneurs, year-end financials are more than just numbers — they reflect the overall health and trajectory of the business. As founders balance multiple roles and responsibilities, ensuring financial accuracy and integrity can feel overwhelming. Implementing strong accounting controls — both detective and preventative — is critical for streamlining this process and creating a foundation for informed decisions, compliance, and sustainable growth.
THIS IS ABOUT TO GET VERY GEEKY WITH ACCOUNTING TERMINOLOGY — YOU HAVE BEEN WARNED!
Accounting controls safeguard a company’s financial operations.
Detective controls identify and address errors or irregularities after they occur.
*Monthly reconciliations
*P&L and balance sheet variance analysis (last year vs. this year, etc.)
*Employee expense report review
*Regular reviews with key executive management team members
Preventative controls work proactively to stop them before they happen.
*Structured approval process
*Automated accounting systems
*Segregation of duties in finance department
*Two-factor authorization for key systems
Together, these controls form a framework that empowers entrepreneurs to finalize their year-end financials with confidence and accuracy. Entrepreneurs often face unique challenges in managing financial processes, particularly when resources are limited. Establishing accounting controls is not merely about compliance — it’s about building a business culture of accountability, transparency, and operational efficiency.
If you think it’s time to implement some procedural changes to your finance function, here’s how to get started:
If you made it this far in the article, congratulations! The geeky accounting terms and definitions did not bore you to tears — and we hope they’ll be helpful to you in the future.
Take-away: If you want to learn how to build a solid foundation of business controls in your accounting and finance department, reach out to Brian at info@acceleratingcfo.com.