In today’s entertainment culture, the hot topic is how to get away with something. Plot lines in shows like How to Get Away with Murder, Scandal, Revenge, and many others are surrounded by this idea. But have you ever tossed around the thought of someone committing fraud in your business? It happens all too often, and most of the time it can be easily prevented. I’ve written a short blurb called How to Commit Fraud and Get Away with It to prove just how easy it would be for employees to pull a fast one if your business does not have a checks and balances system in place to prevent it.
How to Commit Accounting Fraud and Get Away with It
What if I could tell you there is a way to commit fraud and steal from your employer and not get caught? I’m serious; I can teach you. Think about it, you could have new cars, expensive clothes, and all those things you have always dreamed about. Companies large and small experience fraud everywhere, every day and most people don’t get caught.
So, let’s get started. Because larger companies have more corporate governance, its best to find a position with a smaller company. These work better because the owner will be so busy with building the business, the last thing he wants to do is manage a back office.
It’s really important to impress early because that gives you the pinstripes which help you shine and give the owner reassurance he does not need to get involved. He’ll hand you the checkbook, some keys, and give you instructions to get the mail every day. They key to get started is make sure he does not open the bank statements. Chances are that he probably doesn’t look at them on-line either. In order to make sure, you need to start small by forging a check for $200 to yourself out of sequence. Don’t be worried about the bank verifying signatures because they typically don’t do it, and with the handy new technologies you can just use an electronic signature. If the owner notices you can just say it was for petty cash. If he does not, then you know you are in the clear to pillage the company’s bank account and line your pocket book!
Cornwell Jackson’s recommendations to prevent fraud from happening in your business:
- Be diligent in checking references. If checking references would jeopardize the candidate’s current position, insist on checking with a previous employer.
- Keep a close eye on company bank records. The key for owners to catch forgery is to open their bank statements and review for unusual signatures, checks out of sequence, and investigate any vendors that appear improper.
- Secure check stock and financial information in a safe place. Always keep company checks locked away to reduce the opportunity for temptation.
- Maintain an active role in payment authorization. Working with an online software platform, like Bill.com, that requires authorization from the manager greatly reduces the probability for things to slip by unnoticed.
- Include a Trusted Advisor in all Financial Activity. Hiring an outside consultant, like Go and Grow, to close the books monthly and handle financial reporting is a great way to set up a system of quality controls to prevent against fraud in your business.
Talk to one of our Business Services Specialists to discover any fraud risks in your company. We’ll help you learn how to protect your business from fraud.
