Employee fraud is on the rise and small business is bearing the brunt. Everyone is under pressure from the rising cost of living, meaning even the most trusted employee could rationalise putting their hand in the till.
OE offers forensic accounting to identify fraud and then advice and support to ensure the same thing doesn’t happen again.
If you own a small business, take the time to fully understand the financial processes in place and ensure you have the last word on money coming in and going out. Reviewing these internal processes to ensure sufficient separation of duties takes away the fraudster’s opportunity.
In many small businesses, one person has responsibility for approving and paying expenses. Such unfettered control gives that person the opportunity to take small amounts over time, potentially adding up to a significant fraud.
Business owners love having someone to take care of the boring, mundane financial tasks that they dislike and often do not fully understand. But without the necessary approval and authority processes in place, a business is at risk.
That’s why every business owner needs oversight of payments going out – who to and how much. This may take time out of your already busy day but it could save you thousands of dollars.
Robust review and approval processes protect not only business owners but also its employees by removing the temptation to exploit a system weakness.
If you believe your financial processes need a review or you are concerned about the actions of an employee, please reach out to your OE advisor.
