Watch out for fraud scams 

Preventing Small Business Fraud Starts With Your Books 

Internal fraud is a significant issue for many small businesses, but you can take proactive steps to minimize your risk. When you outsource your bookkeeping or implement a clear process for recordkeeping, you’re better equipped to spot discrepancies before they snowball into major problems.

Here’s how you can prevent fraud from within:

• Segregate Duties: One person should not handle all financial responsibilities. This includes invoicing, collections, and paying bills. By separating these duties, you reduce the chance of someone stealing funds.

• Regular Reconciliation: You should reconcile your bank and credit card statements monthly. If something doesn’t match your records, investigate immediately. Small discrepancies can grow into large problems over time.

• Audit Trails in Software: Many accounting software tools, like QuickBooks Online, offer audit trails, showing who made changes and when. This can help you track alterations to your financial records, adding another layer of security.

Regular checks and balances make it difficult for fraud to go unnoticed. Creating a robust system will help protect your company’s finances and give you peace of mind.