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3 Signs You Might Be a Victim of Accounting Fraud

Author : Dennis Najjar
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Are you suspicious of employee theft or fraudulent accounting practices in your mid-size, rapidly growing business?

As a business expands, the executive team spends time focusing on how best to manage rapid growth. The emphasis may be on operations, services, and even expanding the IT infrastructure of a firm. While management is focused on other aspects of the business, this is the optimal time for an untrustworthy bookkeeper to start stealing from the company.

As a business grows, the bookkeeping may grow out of hand, more than one bookkeeper can handle. With things in such a state, deadlines missed, it’s easier for the frazzled, overworked bookkeeper to “cook the books” without anyone noticing.

Here are a few more ways to spot possible corporate fraud before it damages your growing business:

1. Review your books for excessive voided transactions or credits. - When vendor transactions are listed as voided out, the bookkeeper may actually be pocketing the funds. Likewise, a bookkeeper may pretend to issue a credit to a client, but actually keeps the money.

2. Review your check registry – Gaps in check numbers could indicate unrecorded, cashed checks. An almost-sure sign of employee fraud.

3. Duplicate check numbers – Similarly, transactions recorded with the same check number may indicate funny business with your Accounts Payable and employee theft.

Processes and Procedures to Prevent Accounting Fraud

At, your virtual accounting staff does not print paper checks. Checks can only be issued and authorized by you, and are mailed electronically. There is no chance of check theft.

Other forms of accounting fraud are prevented by our process of checks and balances, with a financial controller overseeing your full-charge bookkeeper and closing the books on a monthly basis.

Of course, you have access to your financial statements in the cloud, 24/7. If you ever want to review any financial statements, they are just a few clicks away. You’ll never have more control over your books, or your company’s financial future.

Suspect Accounting Fraud?

Some of our clients became our clients because they suspected employee fraud with their in-house bookkeeper and wanted a virtual bookkeeping company they could trust to manage their financial records.

Today, they tell us they have never had greater peace-of-mind about their books or their business. Are you ready to stop worrying about your bookkeeping and concentrate on your core business, knowing your financial records are in the best hands?

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