Cash Control by One Person - Avoid Fraud

It appears one person has significant control over your business cash accounts. This increases the opportunity for fraud.

To reduce the possibility of such fraud:

1. You (the owner) should sign checks.
2. When signing checks, double check unfamiliar names. Payments could be going to dummy accounts set up by an employee or employees.
3. Have bank statements mailed to your home. Scan them for unusual items before giving them to your bookkeeper.
4. Periodically (for example: twice a year), have someone else reconcile the bank statements. If you don't have another person who can do this, we suggest you have one of our bookkeepers perform this task.
5. Require mandatory vacations for employees with financial responsibilities.