The Report to the Nations of Occupational Fraud and Abuse conducted by the Association of Certified Fraud Examiners was released at the beginning of 2013. This report takes a look at 2012 regarding worldwide fraud patterns. Fraud is a universal problem with over 1,388 cases in more than 94 countries. In business there are times when you have to borrow money to grow your business. If you tend to seek out investors over going with a traditional bank loan, your business could be a target for fraud. Investing in stocks can also be a way for your company to suddenly be defrauded.
If you have a Rochester accountant they can be looking out for your best interest using the following methods:
A Rochester CPA can help you set up anti-fraud controls in your business. They can conduct frequent audits of your financial accounts to see any financial losses which might have occurred. In a Fortune 500 company, for example, it could be easy for $1 million to disappear even if there are fewer than 100 employees. Your Rochester CPA can give financial advice on any investment you might be considering. If you choose CFO outsourcing with Rizzo DiGiacco Hern and Baniewicz you can also take advantage of their bank financing assistance. Rizzo DiGiacco Hern and Baniewicz know how difficult it can be for small businesses to find financial assistance. The process can also be time consuming and complicated, which is why they can help you with local banks to determine which option might be the best for you.
It is easier to stay away from fraud when you go with mainstream lending for your small company; however, if your only option is to have an investor then fully vetting them and monitoring any collateral accounts like cash, receivables, and inventory is important. Often running a business leaves little time for you to continually check on your accounts, but for the Rochester CPA you have hired it will be a part of the package. Fraud does not have to target you through someone you know. It can also be someone who stole credit card or banking information through hacking a different company. In this case looking at accounts to make sure all transactions are legitimate is important.
Through bookkeeping, you can monitor accounts or your CFO through CFO outsourcing can be in charge of checking each transaction and looking for certain red flags. Some fraud is easier to spot and as long as you or your Rochester accountant is looking at your accounts frequently you can stop fraud before too much damage occurs. It is better to plan and be involved in your bookkeeping than leaving it to a shoebox for the end of the year as this is how fraud can happen.
Ask any Rochester accountant about their pet peeves when tax season nears and their most common answer is when their clients are disorganized with their records. Such records disorganization range from a few missing entries on the ledgers…
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