How small businesses are vulnerable to fraud

Too many bookkeepers are making small businesses vulnerable to fraud. This is because of many various reasons. Small businesses normally trust bookkeepers or other people with managing the books of the business, and they don’t consider the risks that are involved. Here are some reasons on how small businesses are vulnerable to fraud:

Trusting the wrong people

One of the most common risks that a small business has, when it comes to fraud, is when the business owner trusts the wrong person. For example, they are hiring a bookkeeper in Melbourne, without doing a background check on them.

At the end of the day, the bookkeeper can’t be trusted and they are taking money without the owner’s approval. This is one of the most common frauds that are reported on a daily basis.

Don’t do research before bookkeeping outsourcing

There are some companies and small businesses that are outsourcing the bookkeeping for a company to a bookkeeper. This is a great idea and has many benefits. However, if you don’t do your research and you don’t make sure that you can actually trust the bookkeeping company, then you might end up with someone that is stealing money, without even realizing it.

You should also make sure that you are getting the financial statements on a monthly basis to make sure that you still know what is going on at the financial aspect of the business.

Stealing money from the company

It is getting easier and easier to steal money from a company. Especially, if this is a small business that isn’t making sure that their banking details are kept private and secure. Stealing money out of an account is something that hackers are doing frequently, and if you aren’t careful, your business might also become vulnerable to this type of theft.

The problem with this type of theft, is that the change of getting the money back is really slim. You need to make sure that your bookkeepers in Melbourne knows the security risks of leaking banking information out. More details in this post:

False invoicing

Paying for something that you didn’t purchase is something that can happen when you are trying to run a business yourself, without using a bookkeeper that you can trust. When someone is sending you an invoice, or they are increasing the amount on the invoice and you aren’t hands on at your business, you might pay this invoice without giving it a second thought.

This is where fraud is coming in. When you are getting an invoice, you don’t always think that this might not be the right amount of money, and you are paying it. Losing money in the process.

There are many reasons why a small business can be vulnerable to fraud. Especially, if the business has only one owner that needs to be active at every part of the business. This is so essential to make sure that you are getting someone that you can trust to ensure that your business isn’t as vulnerable. And, hiring an experienced and trustworthy bookkeeper in Melbourne can help to prevent fraud.