Bookkeeping
services Irvine in California
are critical services that you shouldn’t just trust anyone with.
The most fundamental way to reducing the risk of fraud is by setting
up internal controls. This means that job duties should be separated.
It is crucial to understand that no internal controls system can
eliminate the risk of bookkeeper fraud. It can only make it harder
for fraudsters to steal. If two workers are colluding, it will be
difficult to spot. It is only difficult but not impossible. Here are
some ways to help you reduce fraud in your business.
Creating
separation of duties
This
is the cornerstone of a solid control system. When it comes to fraud
prevention, separating duties involves dividing important duties into
primary accounting and bookkeeping functions between departments or
employees.
You
need to ensure you distribute financial responsibilities and duties
among your employees and if possible use external
bookkeeping
service Irvine in
California. The roles
should be well-defined and divided. Workers who make bank deposits
shouldn’t collect cash or checks from clients and vice-versa.
Control
access
You
should prevent embezzlement of funds by limiting the access of
bookkeepers to bank checks, signature stamps and cash. Requiring a
counter signature on checks is an important precautionary means of
preventing fraudulent behavior. You should also conduct surprise
audits to either detect fraud or prevent it from occurring. This is
one of the best ways you can detect discrepancies in accounting and
financial records.
Be
systematic
A
lot of business owners are looking for strategies to prevent fraud.
If you are using QuickBooks, there are a lot of built-in functions
that can cheaply do this for you. However, you have to take your time
to set it up.
Leverage
outsourcing
Outsourcing
bookkeeping services Irvine CA is one of
the most effective ways of eliminating fraud. This will ensure that
every transaction is accurately checked for.
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