Internal controls checklist for small businesses

What the internal controls checklist for small businesses gives you

Most small businesses lose money to simple things: unrecorded cash, a supplier paid twice, a ghost employee. This checklist lists practical controls for cash, sales, purchases, payroll, stock and the books, with a score so you can see where you are exposed and what to fix first, and a short action plan.

Who it is for

Business owners and managers who want to reduce the risk of loss, and accountants who review a client's controls.

How to use it

1. Go through each section and tick the controls you have.
2. Count the ticks to get a score for each area.
3. List the three gaps that matter most.
4. Fix them and repeat the review every six months.
5. Keep a signed or dated copy with your records, so you can show what was agreed or done.

What is inside

• Controls for cash, sales, purchases, payroll and stock
• A score for each area
• Why each control matters
• A three-step action plan
• A review log

The document is a ready-to-print PDF with these parts: Cash and bank, Sales, Purchases, Payroll, Stock and assets, Your score. It is laid out for A4, with the headings, tables and tick boxes already in place, so you can print it and fill it in by hand, or type into it with a PDF editor.

Tips for getting it right

• Separate the jobs of recording, approving and paying.
• Do surprise cash counts.
• Rotate duties and insist on annual leave for key staff.
• Check bank and supplier details whenever they change.

Why it helps

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Can I edit it? It is a PDF, so it is meant to be printed and completed, or filled with a PDF editor. If you want to change the wording, copy the text into Word or Google Docs and adapt it to your business.

Is it legal advice? No. It is a practical starting point written for Kenya. Rules change, so check the current position and ask a professional where the stakes are high.

Will it work on my phone? Yes for reading. For filling in and printing, a computer or a PDF app works best.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. See more accounting templates or ask us for a custom one.

This document is general information, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to keep business records for KRA: what to save and for how long
• Guide: Bank reconciliation step by step: match your books to your bank
• Guide: Fixed assets and capital allowances explained for small businesses
• Another template: 13-week cash flow forecast
• Another template: Accounting policies and procedures manual template
• Another template: Accounts payable ageing schedule

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