How To Avoid The Possibility Of Fraud In Your Business?

Posted by mark taylor on November 30th, 2017

Nyc tax preparation

Many businesses across the globe lose billions of dollars in financial frauds. But the news finds its way to newspapers only when it takes place in the largest and the biggest of the companies. Smaller and mid-sized businesses are often under the impression that they can’t be in such situation. But when you go with NYC tax preparation and get your business properly audited as well, you may discover some unexpected things as well.

Implement Internal Controls

In small businesses usually, a lot of responsibility lies in the hands of few people alone. So very often you will see them depending on one person to process payments, make invoices, make bank deposits, handle petty cash and reconcile bank statements. This may invite trouble in future, and to avoid this you may consider changing the duties of people and may consider dividing the responsibilities amongst two or more people. Store bank checks in safe locations and regularly check the bank statements. Especially look for the checks or cash that have been provided to lesser-known or unknown parties. Provide mandatory leaves to those managing the financial responsibilities to find the one going on fraud.

Create a Positive Work Culture

One of the best ways to prevent fraud is to create a positive culture in the organization. It is important that the business owners and the managers work as role models of honesty and integrity. If the employees at the top are careless, it may foster a culture of carelessness and may invite troubles.

Implement A Theft Reporting System

Your company should have policies that make whistle-blowing easier. So your employees, vendors, and customers can report suspected fraudulent activities. You have to make sure that the employees understand what fraudulent activities are and they are motivated to report these confidentially.

Invest In Technology

Technology has become advanced and there any software available in the markets which make sure that the entire organization works smoothly and all the data is recorded properly. You can consider implementing ERP as well. It will make sure that every employee is only doing his designated task. They also come with authentication that makes them safer for day-to-day usage.

In The End

Work with CPAs like Nyc tax preparation to make sure that your accounts and books of records are in best shape.

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mark taylor

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mark taylor
Joined: April 13th, 2016
Articles Posted: 69

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