Do you know the red flags in your systems and how to address them? Over the years, we have worked with small business owners and entrepreneurs who have created something meaningful from the ground up. While most people assess the health of a business by examining year-end accounts or cash flow, we understand that some of the biggest risks often go unnoticed in those reports.
They show up in the day-to-day operations:
- how money moves,
- who has access,
- how efficient the processes are
- and how decisions get made behind the scenes.
These things matter because if left unchecked, they can expose you to fraud, lost revenue, burnout, and operational chaos.
So, whether we’re just starting to work together or we’ve been in this for a while, let’s look at some of the most common red flags in your financial system.
When One Person Does Everything
If you’ve got one person handling invoicing, payments, reconciliations, and client and supplier relationships, it’s a red flag.
Why? Because no oversight means no accountability. It’s not about trust, but rather about protecting the business. If you, as an owner, are doing this, it means that the business will face problems if something were to happen to you. Have you considered that?
We’ve seen cases where someone with excessive access quietly paid their own credit card bills and made purchases for years before anyone noticed. Not out of malice, sometimes just out of stress or a sense of entitlement. Either way, it’s a big risk.
With our help, we can implement simple controls. Dual approvals, audit trails, and owner-level visibility into where cash is going.
Logins Tied to Personal Accounts
This one’s sneaky. If your key financial tools, bank accounts, payroll systems, and bookkeeping systems are tied to someone’s personal email or phone, we’ve got a problem.
What happens when that person leaves or falls seriously ill? Access disappears. You will need to scramble because the only login to the system was tied to an employee who is no longer available.
We have witnessed this firsthand. It is chaotic and distracts you from what you should be doing.
We recommend using a password manager, and we are confident that your IT company will agree.
Additionally, set up shared, generic email accounts such as admin@yourcompany.com. It’s also important to ensure that two-factor authentication(2FA) is linked to a company-owned phone or number. Small changes like this can help prevent significant issues in the future.
A company-owned mobile is the key here for 2FA, and it should be manned by at least two people.
Spending That’s Informal and Unclear
If your team is currently being reimbursed for expenses without submitting receipts or if there are instances of charging miscellaneous items to the company card without prior approval, it’s important to address this situation proactively.
This practice can complicate spending tracking and may lead to confusion or misuse.
At Myers Clark, we use a straightforward system that does not require an additional app. If you’re a client and have questions or need assistance, please do not hesitate to contact your usual manager. They will be more than happy to help!
No Documentation for Core Processes
If your financial operations live in one person’s head, we’ve got a single point of failure. Here’s an interesting blog that explains why leaders are often guilty of this and why it can be so detrimental to your business.
As professional payroll providers, we’ve seen businesses miss payroll because the only person who knew how to run it was out sick. This is worrying at best and quite stressful at worst.
Let’s document your key financial processes. Have you documented all your financial systems? May it be bookkeeping, cash reconciliation, payroll, accounts receivable and payable? You need to record them and store them in a shared folder. What are the processes in place to serve your customers?
We can help outline what needs to be captured. We can also review your process at the same time and bring to your attention areas where we think there are risks or opportunities for improvement.
No Continuity Plan
It’s uncomfortable to think about, but if something happened to your office manager or even to you. If something were to happen, what would the team do?
We’ve seen businesses go into full panic mode because no one knew how to access bank accounts, run payroll, or even pay the bills when a key person was suddenly unavailable.
Let’s build a simple continuity plan: who does what, where the logins are stored, and what steps to follow if someone is out. This isn’t about being paranoid, it’s about being prepared.
We are trained auditors, and reviewing your systems and controls is what we excel at. We can conduct an audit of your internal controls and processes to ensure your business is protected from internal risks. We are serious about you and your ambitions.
How about keyman insurance, have you got this covered?
Final Thoughts
These red flags are not only financial; they are also operational. Catching them early makes a significant difference. By addressing these issues, we not only patch up problems but also build stronger systems, reduce risks, and provide you with greater peace of mind.
If any of this sounds familiar, let’s talk. We’ll take it one step at a time. You can call or email your normal manager to start the process.
If you are not yet working with us, please email enquiries@myersclark.co.uk or explore how we work.