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E-Myth – “Why most small businesses don’t work & what to do about it”

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Edmonton CPA | Wanting To Reduce Fraud

Edmonton CPA warns against losing your business altogether because of a lot of fraudulent activity from right under your nose from within your business.

As well, what tends to happen, is the market is very different, or you are right smack dab in the middle of a competitive market and you have made very bad business decisions. However you’re going to definitely not want this to happen… Have a fraudulent issue from within your business!

Business owners are going to have only one person in charge of accounting, in particular, if it is a small business with under 20 to 30 employees. That accountants may not necessarily be an accountant to begin with. However they are in charge, and they should be very trustworthy from this in the business. Because they are not necessarily an account, they may be able to do it their way, which is nobody else else’s way. That might mean that nobody else is familiar with exactly how they’re doing it in terms of records that aren’t exactly up-to-date, a different filing system, organizational system etc.

Edmonton CPA says Edmonton have been for bid that this person goes and leaves altogether or on a holiday, or a day off. All of a sudden money is going missing then you have a legitimate problem.

Make sure that you understand on auditing one-on-one. It’s very quick and simple, says Edmonton CPA. If there is only one person in charge before you do an audience, you’re looking at the risks of that particular entity which are the basic risks for that business. It is easier for them to escape suspicion, and make sure that it is not necessarily a good idea and they can keep on doing it.

The entrepreneurial myth that goes with a lot of this story is the fact that banks are usually very script and organize with one things and not at all with others. They don’t check signatures, or they don’t even check that the signature is legitimately yours to begin with. That could be very devastating in case somebody is in a fraudulent mood with a lot of checks.

Make sure that you are treating checks exactly like you would cash. Checks are definitely being fraudulently used, just ask the Toronto Dominion Bank in Canada. At one point, they had a lot of checks come through that were making big news in that they were deposited twice and double the money was gone from the particular bank. Luckily it didn’t happen and the money was not lost on any of the particular people but it was lost on the banks proper.

It is often very easy for people to inflate earnings when they are the only people who are doing the bookkeeping and the accounting from within that business. Be very careful that the main defence is not having just one particular person processing payroll. Why don’t you switch off and get one person doing payroll and the next person a different person doing payroll for the next by week or month.

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Edmonton CPA suggests setting up read-only access or agent access in terms that they can sell all of the activity and they can help with bookkeeping, reconciling accountants, but they cannot disburse any cash, make withdrawals or deposits, or take the credit card.

Make sure, says Edmonton CPA, that if you are meeting with your charter professional accountant, and you definitely should be, that your meeting at least once a month in person. You will be able to go through all the questions that you potentially have for your charter professional accountant, and you certainly should have some as one month is definitely different from the next or the last.

As well, says Edmonton CPA, you should be able to talk about the variances from within your business over the last month, and potentially forecast the variances coming up. And then you’re going to go back to generating a lot of revenue and scheming about making more money for your business.

The most efficient way is an in person meeting or a set phone conversation at the same date date and within the same time every month. It doesn’t have to be a very long meeting. Just make sure that you are on the same page and you are doing your due diligence to make sure that every thing is well taken care of from within your business.

Instead of using a lot of checks, which can be very dangerous and a big security risk, make sure that you can retain an EFT processor. No one can just take a check sign it and cash it if you have an EFT processor. If you have an EFT funds provider, you will be able to transfer those funds. Those funds will then go from a corporate account to an EFT fund providing that you are all under the payroll and the payables accounts. And make sure that there are very good outsourcing accountants available that can set all of this all up. All of your payroll and payables are going to get totalled at that time.

That account gets transferred from your bank account to a trust account. With an EFT provider you no longer have hundreds of cash disbursements per month that you may or may not be able to keep track of. Now with this new system, you only have one cash disbursement every two weeks.

What you will be able to do is you’ll be able to easily understand if there is fraud happening from within your business. There is going to be a problem and you’re going to be able to notice it. You’re going have to put the controls in place so that the time in the money is disperses at a certain time and reduce the number of transactions that are appearing on that particular reconciliation statement that you have been retaining. Any fraudulent transactions will be ridiculously easy for you to notice.