In today’s increasingly complex business environment, strong internal controls are more than a compliance requirement—they are a competitive advantage. Ann Marie Puig, a respected authority in financial management and business operations, is providing business leaders with actionable strategies to reinforce their internal control frameworks and achieve sustained profitability.
With decades of experience guiding companies through financial restructuring, operational improvements, and system optimization, Puig has seen firsthand how the quality of a company’s internal controls directly influences its profitability and long-term success. She emphasizes that effective controls not only prevent financial errors and fraud but also create a clear foundation for informed decision-making.
The Direct Link Between Internal Controls and Profitability
According to Puig, organizations that treat internal controls as a strategic priority—rather than a box-ticking exercise—are better positioned to maximize profitability. “When controls are designed with both compliance and efficiency in mind, companies can reduce waste, improve forecasting, and protect their assets,” she explains. “Stronger controls lead to cleaner data, which leads to better business decisions.”
She notes that while large corporations often have sophisticated control environments, small and mid-sized businesses can still build robust systems without excessive complexity. The key is focusing on core principles: clear processes, transparent reporting, and strong accountability at all levels.
Tip #1: Standardize and Document Key Processes
One of Puig’s first recommendations for strengthening internal controls is to ensure that all critical financial processes are standardized and documented. This includes procedures for accounts payable, accounts receivable, payroll, inventory management, and expense reporting.
“Documentation ensures consistency, supports training, and creates a clear audit trail,” she says. “When procedures are followed uniformly, it reduces the likelihood of errors and makes irregularities easier to detect.”
Tip #2: Segregate Duties to Reduce Risk
Puig emphasizes the importance of segregation of duties—ensuring that no single employee has control over all aspects of a financial transaction. For example, the person who authorizes a payment should not be the same person who records it in the accounting system.
“This principle is one of the most effective ways to prevent fraud and catch mistakes early,” she notes. “Even in smaller organizations, duties can be rotated or reviewed by another staff member to maintain oversight.”
Tip #3: Leverage Technology for Real-Time Oversight
Modern financial management software offers powerful tools for monitoring transactions, reconciling accounts, and generating reports in real time. Puig advises companies to take full advantage of these capabilities.
“Technology can automate control functions that used to require hours of manual work,” she explains. “Real-time alerts, automated reconciliations, and role-based access controls can dramatically improve accuracy and security while freeing up staff to focus on strategic priorities.”
Tip #4: Conduct Regular Internal Audits
Internal audits are not just for large enterprises. Puig encourages businesses of all sizes to perform periodic reviews of their financial processes and control systems.
“These audits don’t have to be disruptive or punitive—they should be viewed as opportunities to strengthen the business,” she says. “By identifying weaknesses before they become serious issues, companies can protect profitability and improve operational resilience.”
Tip #5: Foster a Culture of Accountability and Ethical Conduct
Perhaps the most overlooked element of internal control, according to Puig, is organizational culture. She stresses that controls are only as effective as the people who follow them.
“When leaders set a strong ethical tone, communicate the importance of following procedures, and hold everyone accountable, internal controls become part of the company’s DNA,” she says. “This culture-driven approach not only supports compliance but also inspires trust from investors, partners, and customers.”
Adapting Controls to an Evolving Business Environment
Puig cautions that internal control systems must evolve alongside the business. As companies expand into new markets, adopt new technologies, or change their operational models, controls should be reassessed to ensure they remain relevant and effective.
“In a dynamic environment, yesterday’s safeguards might not address today’s risks,” she notes. “Regular reviews, combined with a willingness to adapt, are essential for maintaining strong controls and protecting profitability.”
The ROI of Strong Internal Controls
While implementing and maintaining a robust control system requires an investment of time and resources, Puig is quick to point out that the return on investment can be substantial.
“When you reduce fraud, improve efficiency, and make better-informed decisions, the financial gains can far exceed the cost of implementing these measures,” she explains. “Strong controls not only protect against loss—they actively contribute to growth.”
Practical Steps for Immediate Impact
For organizations ready to take action, Puig suggests starting with a simple but effective three-step plan:
1. Assess Current Controls: Map out existing processes, identify gaps, and determine whether controls are effectively mitigating risks.
2. Prioritize Improvements: Focus first on areas with the highest risk or the greatest potential impact on profitability.
3. Train and Engage Staff: Ensure that every employee understands their role in maintaining controls and why these measures are critical to the company’s success.
A Long-Term Commitment to Excellence
Puig’s advice is clear: strengthening internal controls is not a one-time project but a continuous journey. By integrating these principles into daily operations, companies can not only safeguard their assets but also create a solid platform for sustainable profitability.
“In the end, internal controls are about more than compliance—they’re about empowering your business to operate with confidence, make smarter decisions, and build trust with stakeholders,” she concludes.
As organizations face increasing regulatory demands and market volatility, the insights from experienced financial management professionals like Puig provide a valuable blueprint for navigating uncertainty while driving measurable results. Her actionable tips offer a clear path for any business leader committed to improving performance, reducing risk, and achieving long-term growth.
