| Businesses, non-profit agencies and even the | | | | Unfortunately, many individuals who advertise |
| government are all victims of both fraud and theft | | | | bookkeeping or accounting services either aren't |
| on a daily basis. Business owners are sometimes | | | | qualified or do not have the experience necessary to |
| blindsided by these actions and may be unaware of | | | | detect fraud. In some cases, they are the |
| the fraud due to lack of accounting experience or | | | | perpetrators of fraud and theft. When choosing an |
| expertise. In almost every community, large or small, | | | | accountant or firm, you shouldn't base your decision |
| there are news stories about theft from employees. | | | | solely on qualifications. Accounting firms may boast |
| In several cases, unfortunately, the theft is from | | | | experience and qualifications, but that is only half the |
| those entrusted to perform accounting functions. By | | | | battle since equally important is their reputation and |
| the time fraud or theft is detected, sometimes | | | | real world experiences. |
| thousands and even millions of dollars are already | | | | By hiring an Accountant that has experience and a |
| missing. | | | | good reputation, you can have them check the |
| Another downfall of accounting fraud and theft is the | | | | basics of fraud detection first. Here is a list of some |
| potential for customers and investors to lose | | | | of the first things your accountant should check and |
| confidence in the company or organization's | | | | to make sure they are completed on a regular basis: |
| management. According to the Federal Bureau of | | | | |
| Investigation (FBI), some cases of accounting fraud | | | | 1. Internal control of cash and equivalents |
| and theft or not even reported. Companies fear the | | | | 2. Inventory control |
| bad press that is associated with reporting internal | | | | 3. Separation of duties regarding accounting and |
| crimes. Like anything else, the best protection for | | | | financial functions |
| accounting fraud and theft is prevention. | | | | 4. Monthly reconciliation of bank accounts |
| How do you prevent accounting fraud and theft? | | | | 5. Auditing of financial statements |
| One of the best ways is to hire an accountant or | | | | 6. Monthly review of payroll registers |
| accounting firm to work from outside the company | | | | Again, prevention is the best method of fraud and |
| or organization. When selecting an accounting firm, | | | | theft. The first step is hiring the right accountant or |
| you not only want to check their qualifications, but | | | | accounting firm to ensure your company is not a |
| get a list of references and actually call them. | | | | victim of fraud or theft. |