One of the biggest myths about cloud accounting services is that they offer no fraud protection. You may even have heard some claims that outsourcing cloud accounting servicesputs your company in greater jeopardy of fraud than it would normally be exposed to. The truth is, there’s far more fraud protection offered by third party cloud bookkeeping firms than any protection you could find by hiring your very own onsite accountant. Here are just a few ways that cloud accounting offers protection against fraud.
· Third party accounting services enforce systems of checks and balances that drastically cut back on the opportunity for fraudulent activity. The vast majority also perform thorough background checks of their bookkeepers, with extra attention paid to past instances of fraud with previous employers.
· Elimination of paperwork. Going paperless has a far more beneficial impact on your company’s financial security than you might think, including more efficient documentation tracking and the elimination of lost invoices and bills, which could put your company at risk for information theft.
· Fraud protection is increased by the separation of duties, which essentially ensures that no one person will be responsible for the completion of a task. Separation of duties is an invaluable benefit of outsourced cloud accounting services, and one that many small business owners simply can’t afford without hiring two to three employees.
· Frequently scheduled audits are a must to safeguard against fraud, but many small companies simply can’t afford the time or manpower to perform these on a regular basis. Outsourcedaccounting services, on the other hand, use automated systems to run audits frequently, more accurately, and faster than would otherwise be possible.
If worry over fraud risk is preventing you from hiring a third party bookkeeping firm, you may be guilty of buying into a myth without verifying the facts first. To learn about some of thesecurity procedures offered by cloud accounting services, visit AccountingDepartment.com.
