Why Controls Matter
When I led ERP transformation and SOX-aligned internal control improvements across a listed marketing group's 56 entities, the biggest lesson was this: controls are not about preventing fraud. They are about ensuring that the numbers you make decisions on are accurate, timely, and complete.
The 6 Essential Controls
1. Client Contract Register. A single, maintained register of every active client contract: fees, payment terms, scope boundaries, renewal dates.
2. Weekly Cash Position Report. Actual cash position compared to forecast. Updated every Friday. Reviewed by the CEO.
3. Monthly Margin Review by Client. Actual margin per client compared to budgeted margin. Any client with margin below 20% is flagged.
4. Debtor Days Monitoring. Debtor days tracked by client, reported weekly. Any client exceeding 60 days triggers a collections action.
5. Change Order Discipline. No work outside the agreed scope begins without a signed change order.
6. Budget vs Actual Variance Analysis. Monthly comparison of actual results to budget, with explanation for any variance exceeding 10%.
Implementation
Start with controls 1 and 2. They deliver the most immediate value. Add controls 3 and 4 in the second month. Controls 5 and 6 require cultural change.
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