It is simple. The number one reason you should outsource your bookkeeping is due to fraud. The newswires are full of stories detailing the significant losses to businesses because of fraudulent bookkeeping activities.
In today’s local newspaper’s online feed, a story identified a local business with an internal employee stealing $147K from the professional practice.
Police say they got a complaint on July 10 from the owner of the business about an employee who had fraudulently reported business transactions to the clinic’s accounting firm.
During an investigation and then interviews, police say it was discovered that the employee alleged had stolen the money from the firm between January 2016 and June 2020. She was employed at the time, they said.
Fraud is something that most small business owners don’t like to think about and often think, “That can’t happen to me.” However, as we’ve previously discussed, it happens far more often than business owners would like to admit. In small businesses, fraud is the result of a lack or absence of controls, which are exploited by an employee. A critical process that should be examined as part of a fraud review is the process of how bills are approved and paid. While SMB’s often don’t have proper controls in place, this can quickly be addressed by implementing basic controls, which are easy to execute.
This local business did not do anything wrong other than trust their employee. We are not suggesting that fraud is inevitable, and your employees should not be trusted. Creating bookkeeping controls is all about removing the opportunities for fraud to occur and creating a happy and secure environment for your employees and accounting functions.
At Expex, we designed our bookkeeping app to include safeguards to prevent employee theft. Carly is the last bookkeeper you will ever hire. As such, she provides small business owners with complete financial visibility, insight into cash flow, and the ability to operate their businesses more efficiently, with improved profitability and cash flow.
Best practices in any business require separating accounting functions so that no one person has control over the entire process. Expex provides the ability to set access and administrative rights for separating accounting functions so that you can deploy controls within your business.
Employee theft can significantly impact small businesses and not just financially. Fraud and theft impacts all employees, profitability, and company culture. As business owners, frequently, we look at our employees like family, and that can create a blindside and opportunity for theft.
Please take a few moments and contact us to schedule a 15-minute demo of Expex. Yes, it really is 15 minutes!
See how your business can perform more efficiently, effectively, and safely.