Employee theft is not a topic that anyone enjoys talking about, but the reality is it happens every day. Statistically speaking, according to a survey by the Association of Certified Fraud Examiners, it’s likely that your business is experiencing some level of employee theft; on average, every U.S. organization loses 7% of their annual revenues to fraud.
You don’t want to think about dishonesty going on in your company, but as your business grows it becomes an increasingly important issue for you to consider. Taking into account how this may affect your business (and that effect may be huge depending on how much revenue you’re taking in!), now your question becomes this: how can you prevent employee theft?
Believe it or not, the answer is quite simple; outsource your accounting. Such a solution does do a bit of oversimplifying since, in truth, the issue of employee theft is quite complicated to dissect and resolve. Let’s break it down into clear-cut steps that demonstrate exactly why it’s much easier to outsource under these circumstances.
Identifying fraud effectively requires:
– Managing your books daily
– Reconciling accounts at the end of the each month
– Tracking accounts payable and accounts receivable
– Making sure there’s someone above the bookkeeper to check their work
At one point, perhaps you could have managed these tasks yourself, but with your business increasing in size, the things you used to do now require a whole department. That means multiple salaries, unemployment taxes, benefits, finding space for your new employees, and let’s not forget all the time and effort that goes into training and hiring.
With a task this large, outsourcing your accounting is just the easiest and most cost-effective means of managing your financial records in such a way that employee theft never slips under the radar. If you’re concerned about what might be going on in your company right under your nose then contact IAAB today. Perhaps we are that simplified solution!