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In start-ups, due to limited resources, entrepreneurs mostly focus on business development and fund raising activities. The importance of having internal control systems cannot be undermined. Often, the lack of such systems results in poor financial performance and inefficient utilization of resources. Implementation of internal control systems has many benefits. A few are provided below:

• Ensures availability of organized financial information which lends credibility to investors, financial institutions, stakeholders and customers.
• Provides better distribution of duties, responsibilities and accountability amongst employees.
• Minimizes human errors, irregularities, losses and frauds.
• Ensures compliance of all statutory and legal requirements thereby reducing risks of litigations or violation of law.
• Efficient management of assets results in reduced costs and better operating performance.
• Equips management to take well informed business decisions.
• Makes the company an attractive acquisition target.
• Effective management of company results in maximization of business value.

Companies should carry out regular internal audits to ensure that Internal Control Systems are implemented as intended. It also allows modifying the guidelines and procedures along with changes in laws, business models and other related factors.