The importance of finance and accounting controls goes far beyond complying with legal requirements. In fact, revenue cycle controls are perhaps the most important component of an organization’s overall internal control framework!
Not only are revenue cycle controls an organization’s strongest defense against fraud and loss, they help ensure that decisions are made based on valid and reliable information. Moreover, accounting, management and financial reporting are the backbone of an organization’s information and communication system.
What is the revenue cycle?
Sometimes referred to as “Sales, Receivables, Receipts,” the revenue cycle includes all activities directly associated with selling products or services. Typically, it encompasses order processing, credit checking, sales contracts, warranties or guarantees and cash receipts.
First, each organization must gauge its own revenue risks and then ensure that appropriate controls are in place. The 60 Essential Revenue Cycle Questions from First Reference is a free resource that can help … Continue reading “Revenue cycle risks and controls: Essential questions you should ask about your company’s sales and receivables”