Two Things Small Businesses and Non-Profits Can Do Now to Combat Fraud
Our forensic accounting expert, Annette Benson, CPA, CFE, provided her top two suggestions that organizations can do now to prevent fraud.
- Have someone look at the bank statements every month. This reviewer should be someone other than the individual writing/recording the checks; ideally the reviewer should be the owner or a board member. The reviewer would be looking at things such as: Is there an authorized signature? Is this a recognized vendor or employee? Does the amount seem reasonable? I personally feel that a paper copy of the bank statement and checks is faster and easier to review versus looking at statements online and clicking on individual checks and deposits. I encourage clients to have the statements mailed to them directly and reviewed prior to providing to the staff for reconciliation. There may be a cost to receiving paper copies, but may be worthwhile for the time savings to review.
- The second suggestion is to log into Company credit cards online every month to look at the various reports that are available. The credit card companies have done a great job at giving options to view: spending by person, or by category, date, etc. The card companies have made it helpful to quickly see if something appears unusual. Once a routine is developed, these two suggestions should not require significant amounts of time. Regularly reviewing information sets a good tone at the top that fraud is not tolerated and serves as an effective deterrent to signal oversight of the accounting.
Contact Annette Benson at (888) 388-1040 to learn more about our fraud prevention, investigation, and litigation support.
