Preventing Fraud Against Your Business

Small and mid-sized businesses are the most common victims of organizational fraud. And the effects can be very damaging. Small businesses suffer greater losses in relation to their size as opposed to bigger businesses. More than half of all small businesses that suffer fraud don’t recover any losses.

So you might ask yourself what makes a business vulnerable to fraud?

Ways To Prevent Fraud Within The Bookkeeping World

There are many conditions that allow fraud to take hold:

  • Employees perform multiple functions, allowing them to hide their actions.
  • Staff becomes too familiar and trusting with each other.
  • The absence of formal procedures means necessary things don’t get recorded.
  • Accountant/Bookkeeper lacks the expertise to recognize fraud.

In most cases, when fraud is recognized, it is too late to undo or claim lost expenses.

It’s vital that small businesses take steps to deter fraud and detect it as soon as possible.

It’s important to maintain robust internal controls and processes.

Make sure your business takes the right steps in staying protected from the everyday fraudulent activities that you may have overlooked.