Bookkeepers are the people who are mostly involved in the embezzlement of company funds because they are the ones who have access to the funds. The management of a company should be very careful on the way the bookkeepers manage the company funds and in this way it is easy for you to avoid being bankrupt. Hire bookkeepers with a good record in offering quality bookkeeping services. Bookkeeper fraud is common today and more especially in big businesses where the management is weak.
The management should ensure they are scrutinizing the financial records of the companies that they manage so that it can be easy to minimize chances of bookkeeper fraud. Maintaining high quality QuickBooks data file and ensuring that your financial information is secure are some of the measures that can help reduce bookkeeping fraud. Here are some of the other ways that you can use to protect yourself from bookkeeper fraud.
Banking details should be kept well
NEVER give the banking details of your business or company to anyone as this will lead to unnecessary fraud. Not even a single person should know your details as this will have a negative impact on your finances. The password of your financial institution or bank should be kept under lock and key and ensure nobody has access to it. If you make a mistake then you might find some of money missing and it may be hard for you to get the money back. Therefore be very careful with the bookkeepers that you hire because your finances are what run your business.
A watchful eye should be kept on the employees
It is very important to keep a watchful eye on your employees so that you can be able to know the disgruntled employees and the serious workers who need to be promoted. This does not mean that you should be mistrustful to your employees or the accounting staff because you should watch what they do. Never develop a sense of security that is false because it will affect the way you run your business.
Be part of the company’s bookkeeping activities
It is very important for the management of a company to be involved in the bookkeeping activities of the company or business. This will help reduce chances of theft or bookkeeper fraud and in this way you will have saved your finances from loss. Review your financial statement at least once a month to ensure that they reconcile with the ones in the bank. If you find that there is any deficit or excess talk with your bookkeeper to know the cause of the error or difference.
Your accounting staff should be able to monthly financial reports
The main reason why you should be given all these reports is to check and ensure that they are up-to-date and that they don’t have any financial errors. This will make the bookkeepers in your company to give credible financial records without errors or any financial misappropriation. For more information visit Bookkeeperco.com.au