Scaling oversight.
WHAT CHANGES WITH GROWTH
You can no longer see everything More people handle money and assets More locations and transactions Informal controls stop working
WHY INFORMAL CONTROLS FAIL AT SCALE
Personal oversight does not extend beyond a certain size.
WHAT TO ESTABLISH AS YOU GROW
Written processes and responsibilities Documented authorisation limits Separation of duties, properly Regular reporting that shows exceptions Periodic independent review
WHAT TO PRIORITISE FIRST
Payments and banking Cash handling Payroll Stock, where material
WHY IN THAT ORDER
They are the largest and most immediate exposures.
WHAT TO ESTABLISH ABOUT REPORTING
Information that would reveal a problem.
WHAT THAT INCLUDES
Margin by product or location Stock differences Debtor ageing Cost variances Exception listings
WHY BY LOCATION
Differences between similar units are the clearest indicator.
WHAT TO AVOID
Reports nobody examines.
WHAT TO ESTABLISH
That someone reviews and follows up.
WHAT TO CONSIDER AT SIZE
A dedicated finance function with proper separation Periodic independent review or internal audit Systems enforcing controls rather than relying on people
WHY SYSTEMS
They apply consistently and they log what happened.
WHAT TO ESTABLISH ABOUT NEW LOCATIONS
The same controls, from the start.
WHY FROM THE START
Retrofitting controls to an established practice is far harder.
WHAT TO REVIEW
The control framework, periodically and after any incident.
