Simple, consistent habits that cover most of the risk
“Financial controls” sounds like something for a business with a finance department, a board, and an internal audit team.
A five-person business needs them just as much — sometimes more, because there's rarely anyone double-checking anything.
Small businesses are disproportionately exposed to fraud and costly errors precisely because they often lack even the simplest checks and balances. The good news: effective controls for a small business don't need to be elaborate. A handful of consistent habits cover most of the risk.
The short answer
At its core, financial control is about separating duties so no single person can both make and hide a mistake or a fraudulent transaction unchecked, and building in a routine second look at money moving in and out of the business. For a small business, this is achievable without hiring anyone new — it's mostly about how existing tasks are structured.
The core controls every small business can put in place
Separate who prepares a payment from who approves it. The minimum standard: one person prepares a payment, a different person releases it. If you're a sole operator working with a bookkeeper or accountant, that split happens naturally — they prepare, you release.
Reconcile the bank account regularly — ideally by someone who doesn't process payments. If the same person pays bills and reconciles the account, errors and irregularities are far easier to miss or conceal.
Restrict who can change supplier bank details. Changes to a supplier's payment details should be limited to one or two people, and logged — this is exactly the gap payment-redirection scams exploit.
Review new or unusual payments personally. A short, regular scan of payments over a set threshold, and any payment to a new payee, catches most irregularities before they become a pattern.
Set an approval threshold. Payments above a defined amount should require a second person's sign-off, even in a very small team.
Stamp or mark paid invoices. Preventing an invoice from being processed for payment twice, whether by accident or design.
Why this matters even if you fully trust your team
Financial controls aren't primarily about suspecting anyone of wrongdoing — they're about removing the opportunity for a mistake or a bad decision to go unnoticed, which protects everyone, including the people you trust most. A control that prevents fraud also happens to catch genuine, honest errors just as effectively.
The most exploited gap in small business: payment redirection
One of the most financially damaging scams reported by Australian businesses involves a fraudster impersonating a genuine supplier and requesting updated bank details — the invoice is real, the amount is right, only the account number has quietly changed. A simple rule closes this gap almost entirely: never change payment details based on an email alone — confirm any change by phone, using a number you already have on file, not one provided in the request.
Scaling controls to your size
| Business size | A workable starting point |
|---|---|
| Sole trader / very small team | External bookkeeper prepares payments; owner personally reviews and releases them |
| Small team with an office admin role | Payment preparation and bank reconciliation split between two different people |
| Growing team with a bookkeeper or finance person | Formal approval thresholds, documented supplier-detail change process, and a monthly owner review of unusual transactions |
A quick self-check
Is the person who prepares payments different from the person who approves or releases them?
Who can change a supplier's bank details, and is that access limited and logged?
Do I personally review new or unusually large payments each month?
If a fraudulent “updated bank details” email arrived tomorrow, would my process catch it?
When should you get professional help?
you want a proper controls review for your specific business, not just a generic checklist;
you're structuring payment approval as your team grows and want it done properly;
you suspect an error or irregularity and want it investigated; or
you want an outsourced finance function where the people reconciling your accounts genuinely can't move your money.
Continue learning
→ How Can I Reduce the Risk of Fraud, Errors and Unauthorised Payments in My Business?
→ How Often Should I Reconcile My Business Bank Account?
→ Should I Open a Separate Business Bank Account?
SKC Accounting | Knowledge Centre | Knowledge Guide 042
Last reviewed: August 2026
General information only. This guide does not take into account your individual circumstances and is not a substitute for professional accounting, taxation, legal or financial advice.