If you run a small business in the trades—plumbing, electrical, HVAC, construction—chances are, cash still plays a role in your day-to-day operations. Whether you’re handling customer payments, buying supplies, or paying out team expenses, cash is convenient—but it’s also risky.

Let’s talk about why, and more importantly, how to protect your business with strong internal controls.

Why Cash Is the Riskiest Thing You Handle

Cash might be king, but it’s also the easiest thing to lose, misplace, or have stolen. It’s quick to lift, quick to spend, and hard to track once it’s gone. That’s why having tight cash controls is so important.

Here are three simple ways to protect your cash:

1. Separate Who Touches It from Who Tracks It

If someone is handling cash directly (physically receiving or spending it), they shouldn’t also be the one updating the books. That’s just asking for trouble. The person holding the money shouldn’t be the one logging it.

Separation = protection.

2. Make Daily Deposits

Don’t leave cash sitting around—in drawers, in trucks, or in a back office. The longer it’s left out, the more vulnerable it becomes. Get it in the bank daily, if possible. Let the bank be responsible for safekeeping.

3. Track Every Dollar Spent

Cash spending should never be casual. Use pre-numbered checks or online payments with built-in tracking. That way, you don’t end up wondering where thousands of dollars went at the end of the week. “Peeling off a few hundred from your wallet” is not a system.

Don’t Let One Person Do Everything

Cash isn’t the only thing that needs internal controls. Think about your team and who handles what. If you’ve got a team member who orders materials, approves the purchase, and keeps the inventory records… well, that’s a recipe for mistakes (or worse).

This is where segregation of duties comes in. It means splitting up business responsibilities across different people. Even in small teams, it makes a big difference.

Internal Controls Work Best When You Separate These 3 Functions:

1. Approval – One person decides if a purchase or payment should happen

2. Recordkeeping – Someone else logs it in the books

3. Custody – A third person handles the physical inventory or cash

How to Implement This in a Small Business:

• Let your bookkeeper or outsourced accounting team handle the recordkeeping.

• You, the owner, can give final approval on purchases or bills (use bill payment software to make this easy).

• A trusted onsite team member can be responsible for physically receiving materials or supplies.

Even with a small crew, this kind of separation helps reduce errors and prevents fraud. Think of it like building a strong foundation for your financial systems—one that will hold up as you grow.

Bottom Line: Spread Out the Responsibility

You’ve got enough on your plate running a business. Internal controls might not sound flashy, but they’re a simple, powerful way to protect your money, your team, and your peace of mind.

Start small. Set the systems up now—before problems happen. As your business grows, you’ll be glad you did.