Team A will institute various financial controls to ensure that the air-conditioned lawnmower business remains profitable and sustainable over a long period. Some of the targeted financial controls that the company will institute include maintaining an updated book-keeping process, conducting regular internal assessments and audits of the finance department, ensuring financial statements are released on time, and involving managers in critical financial decision-making processes of the organization. Through the help of set internal financial controls, Team A will be able to identify financial leaks that derail the organization's performance and remedy them promptly.
First, Team A will start by mandating that all financial entries be entered into book-keeping records promptly. For instance, every time the company sells an air-conditioned lawnmower, the sales will be recorded in journal books immediately to ensure Team A can track its sales after some time if they decide to. Similarly, all the purchases made by the team will be recorded promptly in journal books to help the organization track its expenditure over a while. Every three months, Team A will conduct an internal audit to check the company's sales income and expenses to understand where it is financially ( Kabuye et al., 2019) . If the team notices that its costs are more than its sales income, it will devise ways to minimize the former. For instance, perhaps team A is over-ambitious and has been overstocking spare parts of the air-conditioned lawnmower, yet the sales are less than predicted. Team A will stop purchasing spare parts until the company has sold at least 80% of its current stock to ensure a healthy financial outlook of the business. Therefore, Team A will control its book-keeping processes and regularly review them as part of its internal financial controls.
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Additionally, Team A will ensure that its end-year financial statements are released promptly to ensure its financial credibility that attracts and maintains clients is sustained. The team's financial information will be printed on its website every June 1st of the year, and shareholders and customers will be assured of a timely financial report as of the date identified above. Therefore, all departments will be expected to submit their financial records for the year to the finance department for timely assessments and compilations to publish the catalogs on the company website on time ( Osadchy & Akhmetshin, 2015) . Furthermore, team A will ensure that the financial records released for public consumption at every end of the year have been properly audited. The step above will be conducted to avoid scandals that may ensue if the company's records do not balance and a malicious individual notices the defect uses the information for a wrong cause. Therefore, team A will publish its financial records in time as part of its financial controls.
Finally, Team A will ensure that all financial decisions are well-vetted by its board of directors before being implemented by the organization. For instance, if Team A decides that it will increase employee salaries by 10% every end of the year, the decision has to be vetted by the board of directors because the funding for rising staff wages will affect the business's overall operation. Similarly, departmental heads or supervisors must approve purchases that are deemed small in size to ensure the company does not spend its money on non-essentials. Therefore, to ensure the business's financial integrity, Team A will institute strict internal financial controls as explained above.
References
Kabuye, F., Kato, J., Akugizibwe, I., & Bugambiro, N. (2019). Internal control systems, working capital management and financial performance of supermarkets. Cogent Business & Management , 6 (1), 1573524. https://doi.org/10.1080/23311975.2019.1573524
Osadchy, E. A., & Akhmetshin, E. M. (2015). Development of the financial control system in the company in crisis. Mediterranean Journal of Social Sciences . https://doi.org/10.5901/mjss.2015.v6n5s2p390
