Do Entrepreneurs Worry About Fraud?

Almost all Entrepreneurs have heard about fraud affecting business. While they might be lucky not to have experienced fraud first-hand, they can appreciate the devastating effect of malfeasance and broken trust in companies.

Entrepreneurs are often too trusting of their employees, especially ones who started at the beginning. Too much trust without built-in internal controls leads to a potential environment for fraud.

Entrepreneurs might be aware of the need for internal controls in their companies, but the size of their organization often limits proper segregation of duties.

Regardless, Entrepreneurs should be vigilant about proper checks and balances as they build their organizations. While trusting your people is a fine virtue, a solid company is built on strong systems and procedures with proper internal controls.

Even in a smaller organization, creative division of responsibilities with reviews and approvals can provide adequate controls.

Protect your company against fraud by doing the right things!

Ravi Patel

www.patelCFOservices.com

Protecting Against Fraud

Almost everyone has heard about fraud affecting business. While you might be lucky not to have experienced fraud first-hand, you can appreciate the devastating effect of malfeasance and broken trust in companies.

Entrepreneurs are sometimes too trusting of their employees, especially ones who started at the beginning. Too much trust without built-in internal controls leads to a potential environment for fraud.

While most Entrepreneurs are aware of the need for internal controls in their companies, the size of their organization often limits proper segregation of duties.

In any event, Entrepreneurs should be vigilant about proper checks and balances as they build their organizations. While trusting your people is a fine virtue, a solid company is built on strong systems and procedures with proper internal controls.

Even in a smaller organization, creative division of responsibilities with reviews and approvals can provide adequate controls.

Protect your company against fraud by doing the right things!

Ravi Patel

www.patelCFOservices.com

 

Published in: on May 21, 2013 at 4:52 am  Leave a Comment  
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Warning Signs

Entrepreneurs, are you faced with any of these situations in your company?

Employees do not take time off; changes in lifestyle of employees; living beyond their means; possessive of their work; missing documents; books out of balance; delayed deposits; records not organized; duplicate payments; payments to same individuals, numerous times; and so on.

These are warning signs of potential fraud or unacceptable behavior. Time to check things out!

Ravi Patel

www.patelCFOservices.com