Ten Ways to Prevent Small Business Fraud
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Transcript of Ten Ways to Prevent Small Business Fraud
Ten Ways to Prevent Fraudfor small businesses
1. Mail bank
statement to
owner
Someone other than
the bookkeeper
should open the
bank statements
2. Review vendor list
Someone other than
the payables
bookkeeper should
review the
vendor list
3. Control credit memos
Receivables personnel can
steal payments and reduce
customer account balances
4. Control the
opening of mail
Don’t allow
bookkeeper to
open mail
5. Don’t put the
bookkeeper on
the bank
signature card
The business owner
should sign checks;
don’t use signature
stamps
6. Have the owner
sign off on journal
entries
The bookkeeper
should not be the
only person seeing
the journal entries
7. Perform
background
checks for new
employees
Call the prior
employer; perform
criminal and credit
checks
8. Provide an anonymous
means to communicate fraud
Advise your employees that they
can provide information about
fraud in a suggestion box
9. Require
vacations
Have someone
perform the
vacationing person’s
duties
10. Get Fidelity Bond
If all else fails, have
sufficient insurance to
cover employee theft