Accounting and bookkeeping both play an important role in keeping businesses and practices profitable and in preventing embezzlement.
Here are some simple things that you and your organization can do from an accounting and bookkeeping perspective in order to deter fraud. For example, it is best to dedicate specific financial duties to certain individuals as a way to better maintain accountability. Dividing up various aspects of accounting within a firm will reduce the chances of embezzlement. This creates a simple checks and balance system that substantially improves overall accountability.
Send Payments Directly to Your Bank
In addition, consider purchasing a safety deposit box or check box that is able to receive mail at your local bank. Sometimes referred to as a lockbox, this is an inexpensive solution that works quite well. This is a simple strategy that allows a firm to direct customers to send payments directly to your bank. The end result is that deposits are more efficient, faster and more accountable. This greatly reduces the chance of theft or embezzlement. As an added note, business owners should pay particular attention to bank statements and their authenticity. Never automatically assume that a bank statement is an original.
Minimizing the Risk Of Potential Fraud
For example, having a bank statement sent directly to a business owner’s home can greatly improve overall accountability. This can also be done for other financial documents such as credit card statements. Using simple yet important accounting and bookkeeping protocols is one of the best ways in preventing embezzlement. Business owner should get into the habit of being the last person to come in contact with company checks. After a business owner signs an actual check they should get in the routine of mailing the check directly themselves. This is yet another way of minimizing the risk of potential fraud. Saving your company time, trouble and money is easy when you know how . Contact our team of professionals at Vigorant today to learn more.