Lean Season Projects: Set Up a Better Financial Control System

From the Desk of a Filipino Accountant Who’s Seen the Cost of Weak Controls

After the tax rush dies down, many business owners feel tempted to “rest” their finances until the next deadline. But as an accountant who has cleaned up more than my share of messy books and audit headaches, I always say:
The lean season is your golden opportunity to build a stronger, more resilient business—and it starts with better financial control.

Weak internal controls don’t just lead to errors—they open the door to fraud, leakage, mismanagement, and lost profit. The truth is, most businesses I’ve helped didn’t realize they had control issues until the effects were already hurting them.

In this blog, I’ll share how we’ve used the lean season to help clients set up financial control systems that gave them peace of mind, cleaner reports, and more confidence in their numbers.

💼 What Is a Financial Control System?

A financial control system is a set of policies, procedures, and tools that help you:

• Prevent and detect fraud or errors

• Monitor and limit expenses

• Keep accurate records

• Assign clear responsibility for financial tasks

• Comply with BIR and regulatory requirements
  
  

In short: it’s the system that protects your money and gives you better decision-making power.

🧾 Common Problems We See Without Proper Controls

• Cash advances with no liquidation

• Unrecorded sales or delayed deposits

• Overlapping access to petty cash and inventory

• Inconsistent documentation of expenses

• Unknown or unapproved purchases

• Underdeclared or duplicated tax entries
  
  

One client had been unknowingly losing ₱20,000/month from undocumented purchases and misrecorded inventory shrinkage—until we set up proper financial control procedures.

✅ Lean Season Action Plan: Set Up Your Control System

Here’s what we help our clients implement while the schedule is light and the pressure is low:

1. Segregate Duties Clearly

No one person should handle every part of a transaction. For example:

• The person who receives payment shouldn't also record it in the books.

• The one who requests a purchase shouldn't also approve and pay it.

📌 Small business hack: If you’re a lean team, use digital tools for approvals (e.g., email or messenger receipts for transparency).

2. Implement an Expense Approval Flow

Before money goes out, it should follow a documented process:

1. Request → 2. Approval → 3. Documentation → 4. Payment
   Set thresholds (e.g., expenses above ₱5,000 require owner approval). This alone has helped some of our clients cut unnecessary spending by 30%.
   
   

3. Track Cash and Digital Transactions Separately

A business we helped used both cash and GCash for transactions—but didn’t separate them in reports. It became a nightmare during tax filing and BIR audit.

We created separate ledgers for:

• Cash on hand

• Bank account/s

• e-Wallets (GCash, Maya)
  
  

📌 Tip: Reconcile each one monthly.

4. Create Standard Operating Procedures (SOPs)

Write down the steps for:

• Sales and invoicing

• Expense recording

• Receipt filing

• Payment processing

• Bookkeeping schedules

Even just a Google Doc with bullet points can help new staff follow your system and avoid guesswork.

5. Use Simple Tools with Control Features

We don’t always push expensive software. Many of our clients succeed with:

• Google Sheets (with locked tabs and formulas)

• QuickBooks or Wave Accounting for automation

• Shared drives for organizing receipts and reports

• Messenger or email threads as approval archives

The key is not the tool, but the discipline behind using it consistently.

💬 The Role of Your Accountant

As accountants, we’re not just here to file taxes—we’re here to help you build systems that run without fear or fire drills. During the lean season, we:

• Audit current controls

• Recommend improvements

• Help document policies

• Train your staff

• Monitor implementation
  
  

📈 Final Thoughts: Build Before the Rush

When you set up strong financial controls during the lean season, you’re not just avoiding stress—you’re building a more secure, organized, and scalable business.

Don’t wait for another crisis, lost receipt, or BIR letter to fix your system. Take this season to build better habits, document stronger controls, and set your business up for sustainable success.

If you’re ready to build or upgrade your financial control system, let’s work together. A strong business isn’t just profitable—it’s protected.