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Edmonton CPA says that oftentimes might end up happening that you were going to be running out of the business because you are in fact in trouble in the market or in a competitive market and it is a very tough market at that.
As well, you have potentially made bed business decisions but you do not want to run cash because of a fraud issue, that’s for sure.
A lot of business owners, in particular small business owners, have one person in charge of the accounting. This is necessarily not a great idea, as they have a filing system that no one else is going to be familiar with. What happens if that particular person goes on holidays and you are stuck with this filing system that cannot be deciphered. They’re going to have records that aren’t exactly up-to-date as well potentially. All of a sudden, money is going to go missing and nobody can figure out exactly how that potentially happened.
The basic risks are if there is only one person in charge before you definitely should be doing an audit.
Edmonton CPA states that it is so much easier for them to get away with it so please do be careful if there is only one person taking care of the books, and all of the accounting.
One of the business owners think that they don’t have another specific choice from within their small business but to take care of the accounting and stuff just within the one person. However, you’re not going necessarily have another choice in outsourcing can have multiple people involved then not at all. It can in fact be cheaper to outsource than the cost of one staff member as a matter of fact, if you do it in-house, you have the risk of that one person running the accounting and nobody else understanding.
Edmonton CPA says that there is a particular entrepreneurial myth that you are going to have to watch out for. The myth is that the banks don’t check the signatures. However, that myth is absolutely true. The tell you that they check them, however they will check them. They check them so sporadically that they may as well not check them at all. You’re going to need to look at checks specifically like cash.
They should be by all accounts under lock and key. They are the sickle biggest risk of fraud in most small businesses.
Instead of utilizing checks from within your small business, consider adopting the EFT processor concept. If that is a particular way that you want to go, no one will be able to just take a check, sign it cash it.
As a matter of fact, Toronto Dominion Bank, had big problem with this a couple of years ago. What ended up happening with Toronto Dominion Bank, is there were checks that were being cashed twice’s, so do be careful with fraudulence.
Edmonton CPA introduces you to an EFT processor. With the EFT processor can do is it can legitimate process checks and make sure that they are legitimate and not fraudulent whatsoever. If you have an EFT funds provider, you will be able to transfer a lot of those checking funds, from a corporation account to an EFT funds provider.
As well, what ends up will happening is you can then transfer those funds from a corporation account to an EFT fund provider for all of your payroll and payables accounts good outsource accounts as well will fund provider for all of your payroll accountants can very easily set this up for you. And all of your payroll and payables will get total, and you, with one big total and that amount will get transferred from your bank account to a trust account.
Keep in mind that the amount is going to be no longer have hundreds of cash disbursements per month. In this case, it is just going to have one or two disbursements which is going to be very easy to the bookkeeper. That will make it even easier for you to realize any fraudulent activity.
It is so simple, says Edmonton CPA to have people inflate earnings from the comfort of their own bookkeeping office from within your firm. The main defences not having just one person processing payroll. Make sure that you adopt the concept of having to people looking over and processing the payroll every two weeks or every month or however often you do payroll. That is very difficult for more spar businesses to do. The person processing payroll has a high degree of responsibility from within any business as well, you’re going to very easily be able to inflate paychecks which you as a small business owner definitely have to guard against.
Your be able to set up road-only access or agent access, and they can definitely see all of the activity. They’re going to be able to help with bookkeeping, reconciliation accounts, but they are not going to be able to disperse cash of any kind. What that means is, they are not going to be able cash checks, take-out debit cards, or to go cash or pay for anything for that matter.
As well, says Edmonton CPA, you’re going have to do it in person or by phone with your accountant. It is so much easier to get messages and communication across if you’re not going to engage in inefficient vocab conversation after or completely avoid the conversation altogether. That is something that absolutely needs to happen at least each and every month. You should have questions each and every month as well. Every time that you sit down with your accountant for your monthly meeting make sure that you have questions for them. You’re going to be able to talk most efficiently in person or the set up a phone conversation at the very least. In order to investigate any anomalies from within your business, etc.
