When we talk about internal controls, keeping cheques in a safe place is important so here we see some Internal Controls Cheque Safety
a) Cheque should be prepared by a person and reviewed by another person before the same is sent for authorized signature alongwith required documentation.
b) Ensure that all the cheques are stamped A/c payee Non-Negotiable before hand. One may ask what happen when we want to draw cash – this could be done by mentioning putting a cross on t the A/c payee Non-negotiable and signed below by the authorized signatories. Try and see once whether bank is accepting this before stamping on remaining cheques.
c) Put a Cello tape on the cheque amount.
d) Some even put a carbon paper behind the cheque in reverse side before writing the cheque. The cheque impression is copied on the back of the cheque in which case corrections to the cheques could be noticed.
e) For any reason if a cheque is cancelled, you should keep the cancelled cheque in the cheque folder or in a separate file if you are maintaining a separate file for cancelled cheques. It is a good practice to put a note behind the cancelled cheque the reason for cancelling the same.
Electronic Transfer: Now a days most of the transactions are made by electronic transfer wherever these facilities are avaible. As soon as you receive message from a party about the transfer of funds/money you should check with your bank before issuing a receipt. Now a days banks also send messages as soon as a transaction is taken place.