The latest statistics on fraud should send a big jolt of fear into small business owners. According to an embezzlement survey by HISCOX, a specialty insurance company, 80 percent of embezzlements occurred at small businesses — defined as those with less than 150 employees — and 30 percent of embezzlements involved a loss of more than $500,000.
The first time I witnessed someone stealing money from a company I was shocked and dismayed. I couldn’t believe that someone in the financial management field could be so unscrupulous – after all, by nature of their job in accounting, they are the gatekeeper of a company’s money.
At the time I was 29, and that experience opened my eyes to understanding that having financial controls in place is critically important. In the years since I’ve seen many instances where a company’s lack of controls has resulted in people stealing from them.
In this time when more and more work is being done remotely, including paying vendors and processing payroll, it’s critical that you have controls and processes in place to avoid this happening to you.
In today’s video, I share simple practices and processes to help you avoid accounting fraud and stealing in your business.
A resource you may find helpful is “10 Ways to Spot Accounting Fraud.”