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Edmonton CPA cautions many small businesses who have taken it upon themselves to simply have one person deal with the bookkeeping and accounting from their small business.
Often times what happens is this is going to be very risky for you in your small business, as this can easily have the one person inflate hours and wages which can be very easier for you, to catch. You might have money siphoned out of your business and you don’t even know it. Also, payroll remittances can be also harder to catch as well. Then you’re going to have a lump sum payment going to the CRA and make sure that you are checking individual pay stubs as well.
It should be mentioned time again not to share credit card can credentials with the person from in your business. It is the same as your personal credit card never exchange credit card information. If in fact there is somebody from within your business that does need a credit card, you may in fact be able to get the credit card but the onus is entirely on them to keep it safe, and be responsible for it. If it in fact goes missing, the accountability should be on them the cardholder.
Edmonton CPA wants you to stress the fact that you no longer need petty cash. We are in that way for century, and we have credit and debit cards that are accepted everywhere now. Everybody now accepts debit and credit card pretty much the whole world over. It can however be cumbersome in terms of a credit card but you do not want everyone he on your team to have one. That is just being safe.
If you do in fact have one person one day to be responsible for the credit card and the next person responsible for the debit card that is acceptable, and is a very safe way to deal with business. You can get a demo card that can’t be used for any online transactions, and doesn’t have any specific name. Set a limit on the debit card as well a $500 and that will be the new petty cash tool from within your business.
It is easier to definitely account for and has obviously a lot less risk.
At the very least, if you do find that somebody is fraudulent with the debit or the credit card, you’re at least only losing $500, and not typically and hopefully not thousands.
Edmonton CPA reminds you that just because you are part and paying for a corporation, that doesn’t necessarily mean that your corporation that you have paid for is a legitimate corporation at all. Make sure that you consider looking whether they are incorporated or not or if they have a legitimate history. You’re definitely going to have to know who these payments are going to and if you don’t recognize a name of the cash disbursements, that is going definitely through your EFT provider and not your checks. That can be a very dangerous scenario.
It may seem so simple, says Edmonton CPA, however fraud can be very difficult to catch.
Especially if you had fraud with from within your small business.
In fact, sometimes you going run of the business because of deferent trouble in the marketplace or you are right in the middle of a bear very competitive market from within your specific industry. As well, hopefully this will never happen to you but you could potentially have made very bad business decisions but you do not want to run out of cash… Because of a fraud issue!
Edmonton CPA states that business owners have a usual person which is oftentimes just one person in charge of the whole accounting department. Which is very detrimental to security. That there going to have a specific filing system, that nobody else is going to be able to figure out, and if they go on holidays, or as a way for the day, nobody is going to be able to get their proper stuff. No one else is familiar with anything that they have done, and they have records that aren’t exactly up-to-date.
All of a sudden, money is legitimately going missing and you have no idea had trace it.
Auditing on that entity if you’re looking for at the risks of the specific entity the basic risks if there is only one person in charge before you do an audience audit is very dangerous. It’s easier for them to get away with it in terms of not being able to trace it or follow it. A lot of business owners think that they don’t necessarily have another choice. Emden CPA says that they should and they probably will particularly only have one particular person that they can “trust” for doing their bookkeeping or all of their accounting. Make sure that you consider outsourcing, which can be and can have multiple people involved then cheaper than the cost of one staff member if you do it in-house as well, you’re going to run the risk that one person is entirely always running the accounting without having taught anybody else or without anybody else having figured out the system.
As well, Edmonton CPA says there is an entrepreneurial myth that has always been about that says the banks don’t check the signatures when you go to the bank and sign the little slip after you have deposited or withdrawn anything. That is 100% the truth and that myth can definitely be justified. They’ll tell you that the check or that they check them and check them so sporadically in fact, that they may as well not check them at all. You’re definitely going to need to look at checks exactly like cash.
They should be under legitimate lock and key. Not too terribly Longo the Toronto Dominion Bank in Canada had a lot of issues with people signing checks twice and depositing them or withdrawing them.
