Accounting Control

Internal Controls

Internal accounting controls include systems of authorization, approval of documents, and separation of duties and responsibilities assigned to office personnel, from those assigned to the operating departments.  Internal accounting controls are also necessary to maintain proper flow of documents such as sales invoices; repair orders, finance contracts and cash receipt tickets.  Periodic review of the accounting controls is essential to ensure continued effectiveness and relevance to changing conditions.

Large businesses can achieve effective internal control procedures by subdividing duties, so that one person does not handle a given transaction from beginning to end.  Unlike large businesses, it is often difficult for dealerships to subdivide duties with a limited number of employees. Therefore, it is critical that proper internal accounting controls, especially in the area of internal reviews, be maintained.

The information presented in the following pages is intended to emphasize certain accounting controls relative to the application of the General Motors Dealer Standard Accounting Manual and Handbook and to outline internal control procedures considered necessary to its operation.