Businesses, non-profit agencies and even the government are all victims of both fraud and theft on a daily basis. Business owners are sometimes blindsided by these actions and may be unaware of the fraud due to lack of accounting experience or expertise.
In almost every community, large or small, there are news stories about theft from employees. In several cases, unfortunately, the theft is from those entrusted to perform accounting functions. By the time fraud or theft is detected, sometimes thousands and even millions of dollars are already missing.
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Another downfall of accounting fraud and theft is the potential for customers and investors to lose confidence in the company or organization's management. According to the Federal Bureau of Investigation (FBI), some cases of accounting fraud and theft or not even reported.
Companies fear the bad press that is associated with reporting internal crimes. Like anything else, the best protection for accounting fraud and theft is prevention.
How do you prevent accounting fraud and theft? One of the best ways is to hire an accountant or accounting firm to work from outside the company or organization. When selecting an accounting firm, you not only want to check their qualifications, but get a list of references and actually call them.
Unfortunately, many individuals who advertise bookkeeping or accounting services either aren't qualified or do not have the experience necessary to detect fraud. In some cases, they are the perpetrators of fraud and theft. When choosing an accountant or firm, you shouldn't base your decision solely on qualifications. Accounting firms may boast experience and qualifications, but that is only half the battle since equally important is their reputation and real world experiences.