Eliminating Segregation of Duties Through Outsourcing of Accounting (The Importance of Segregation of Duties)
The greatest possible risk that your company faces – embezzlement from the inside – is something that can be avoided through the segregation of duties. When it comes to accounting, segregation of duties means that no single person should be in control of every aspect of the company’s finances. Finance accounting outsourcing, which entails hiring a third party to handle all financial statements online through an encrypted connection, is one of the best possible solutions to eliminating this threat.
These are some of the common methods that a less-than-honest bookkeeper with bad intentions can employ to embezzle money from your company.
· Depositing company profits into a hidden account that only they have access to and that nobody else is aware of.
· Writing and approving checks made payable to themselves or another party they’re in collusion with, or for personal purchases or personal bills.
· Creating paychecks in the name of employees that don’t exist and cashing the checks themselves.
· Exaggerating the cost of company purchases or services and pocketing the difference.
· Outright theft of large sums of money.
Not only does finance accounting outsourcing help eliminate the risk of theft and embezzlement, but it can also save your company a substantial amount of money in payroll expenses. Rather than hiring a team of employees to handle the various aspects of your company’s finances, you can instead task an outsourced firm to do the same at a relatively low cost, especially when compared to the costs you’ll incur paying the salary and benefits of on-site personnel.
If you’re concerned about the risks of transferring financial statements online to an outsourced accounting firm, visit AccountingDepartment.com to learn more about the security measures that are in place to prevent loss of information.