If you’re a business owner concerned with fraud, the answer lies in your small business accounting statements. Company fraud has been known to bankrupt small and large businesses alike. While there’s no surefire way to guarantee you will never be a victim of employee theft, there are several ways to protect yourself and your business.
1. Use an outside business accounting firm. Employees of your company know you well. They may get angry with you. Even if you’re a good boss most of the time and foster good company morale, all it takes is a bookkeeper who doesn’t like a decision you made. Maybe she felt her raise wasn’t high enough. Or maybe she’s friends with someone in sales who thinks you like the other sales manager better. You just never know.
Corporate fraud doesn’t happen in a vacuum. There are people involved. People with motivations. An outside business accounting firm simply doesn’t get involved in company politics. This significantly reduces your risk of corporate theft.
2. Use a paperless office. If your important small business accounting statements and financial documents are stored in an unlocked file cabinet, you may as well wear a sign that says “Steal from my company.” The most secure office is a virtual office, where all files are stored securely in the cloud, and encrypted with the best SSL encryption methods available today. If you use an outside business accounting firm that works remotely, all your records will be stored virtually.
3. Review your own financial records. No matter how much you trust your bookkeeper, never, ever (and we mean never!) neglect reviewing your financial statements. If you don’t understand what you’re seeing, get someone to help you — such as an independent financial controller as provided by AccountingDepartment.com. Business owners who take an active role in their financial statements are less likely to be victims of corporate fraud.
