Small business embezzlement and corporate fraud are among the biggest fears companies face. Once you discover it, there’s a limited opportunity for recovery, even if you litigate and seek prosecution against the trusted employees who perpetrated the crime. In worst-case scenarios, unsuspecting managers and executives could face charges themselves.
Sometimes, these damaging actions are truly malevolent, such as outright theft, misappropriation of funds or records falsification with the intent of tricking investors and regulators. Other times, the problems are caused accidentally by well-meaning but poorly informed and overworked personnel.
Proper CFO advisory services and bookkeeping by a knowledgeable accountant can prevent these problems from occurring in the first place. In many cases, outsourcing these financial services to a dedicated firm is the best plan of action.
One benefit of an outside CFO advisory service is objectivity. A trained financial services professional can help with fraud prevention at your company by taking a fresh look at your books and making sure all the numbers add up correctly and match management goals.
Furthermore, a dedicated financial services professional will be aware of all the latest information about fraud prevention law, trends in enforcement against corporations, and any new ways employees might be tempted to break the law. When you hire help from a financial services firm, you can save time and stress by not having to worry about this complicated subject.
Trained financial analysts and consultants will also have important information relating specifically to your type of business. According to a press release from the FBI agents in California, a woman in the IT sector was arrested in Utah for wire fraud and money laundering that cost her company millions. She allegedly submitted deceptive expense reports and invoices, attributing costs for things like vacations and childcare to a shell company. A trained accountant might have saved the IT company from this embarrassing problem by knowing how to compare credit card statements to invoices properly.
Fraud can happen anywhere, so prevention is necessary everywhere. In Texas recently, several employees and executives of a for-profit college pleaded guilty to charges relating to student loan fraud. Again, if the right person had been watching the books from an outside perspective, the problem might not have blossomed into a national news story.
White collar crime is a common problem and takes many unsuspecting businesses down permanently. Our financial advisory services, trained accountants, and even litigation support services can help keep you safe.