Internal Control for Business Owner to Prevent Fraud in there Finances.

As an Owner of a Business delegating task to other can be more efficient and effect to help grow the business. Focusing on the most important aspect of the business where it more crucial than the other small task that you have to deal with might be time consuming.

When you assigned task to other you need their trust and confidence in their ability to complete the objective. When it comes to the bookkeeping of the business. You should create procedures and control to make sure that a bookkeeper doesn't commit fraud. Because you give the bookkeeper access to financial records that doesn't mean you can just forget the small details because you don't handle it any more.

Here are a few tips to help prevent fraud from bookkeepers that might try to get away with it:

• Looking at monthly bank statements and cleared checks.
• Looking at credit card statements and monthly charges; verifying payments are made to the card each month and the balance seems reasonable.
• Looking at online banking history; asking questions about transactions which seem unfamiliar.
• Looking at payroll reports and paycheck amounts; making sure everyone is receiving gross wages in the proper amount.
• Not giving checking signing authority or access to a signature stamp to the bookkeeper.
• Having procedures in place to prevent inventory theft.
• Having Petty Cash procedures in place to prevent theft of cash from the cash box or cash register.
• Being “scam aware” of letters and emails pitching services that may not be needed, or which business owners or their bookkeepers can do for free, such as renewing city or county business licenses.
• Looking at your P&L and Balance Sheet on a regular basis.
• Requiring timely reports, and looking at them.