Think fraud can't happen in your business? Think again! Fraud occurs when there is motive, opportunity, and rationalization. If you can reduce the opportunity for fraud, you minimize the chance of fraud happening to you.
Related Article here: https://www.fastcompany.com/90708363/credential-fraud-is-a-major-concern-for-businesses
Here are some tips that can help:
- Have your bank statements come to your home address and request that copies of checks are included with your statement. Review all checks to make sure they look appropriate and were signed by you (so another tip is to personally sign all your business checks)!
- Never let employees use your passwords, sign your name, or use your credit card – ever! If you do it could compromise your legal recourse in case of fraud or embezzlement. If they need a credit card, set up a low limit card in their name to be used for business purposes only.
- Reconcile all bank accounts, credit card accounts, and loan accounts monthly. If at all possible, don’t have the person who is cutting checks and receiving customer deposits be the person who does the recons.
- Review your financials carefully, every month. Get familiar with what makes up your income and expenses and question when something doesn't look right.
- Don’t let anyone but you, the owner of the business, sign in as administrator in your accounting file. Set up separate users for each person who will access the file and limit what they can do based on their “need to know.”
- Set up a closing date (in accounting preferences in QuickBooks) with a password to avoid inadvertent changes to a prior period or prior year’s transaction.
The Oak City Accounting team is here to help you navigate your financials and help you put processes in place to avoid fraud. Reach out to us today: https://oakcityaccounting.com/contact
