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