Being Alert to Possible Fraud

2-minutes to read

2-hours to implement

Important dates:

1) Tuesday, April 15th, is the deadline to contribute to IRAs to have them count on this year's (2024) taxes.

2) It is also the deadline to claim the $1BN+ in unclaimed refunds for returns dating back to 2021.

And one last thing: YOUR 2024 TAX RETURN AND PAYMENTS ARE DUE April 15th.

11 Simple Fraud Safeguards You Should Implement

"Don't go around saying the world owes you a living. The world owes you nothing. It was here first." -Mark Twain.

I've seen enough business owner friends get burned because they did NOT have the following procedures in place, that I wanted to share these policies with my entire network. It is an excellent idea to take every reasonable precaution to prevent fraud or theft in your company, and further -- in the event it does occur -- be sure to have the right insurance protecting you.

So, I've developed this comprehensive fraud checklist, a must for every business. While some points may seem obvious, they are crucial. Document and enforce these measures to ensure your business is well-protected.

And here's a bonus: You have my permission to include this checklist in your employee manual. It's a simple yet effective way to ensure everyone in your company is on the same page when it comes to fraud prevention.

Behm's Fraud Checklist

1. 1-Develop a code of conduct that explicitly prohibits employees from committing fraud, having conflicts of interest, or engaging in any other form of illegal or unethical behavior. Ensure all your employees, vendors, and customers get copies of it. Have key employees provide annual confirmation of their compliance.
2. 2-Have a clear company policy on time and expense reporting.
3. 3-Verify the credentials of all new vendors before they are authorized to supply the company.
4. 4-Make sure all disbursements are properly approved.
5. 5-Use direct deposit for payroll.
6. 6-Require two signatures on checks over a certain amount.
7. 7-Review the bank statements before anyone else does. Consider having them sent to your home address. Review canceled checks (or copies) and match payee names with endorsements. Review invoices for any payees you don't recognize.
8. 8-Bank statements must be reconciled monthly, with your accountant reviewing the bookkeeper's work periodically.
9. 9-The employee who makes deposits is NEVER a signatory on checking accounts.
10. 10-Make sure everyone takes their full allotted vacation time and be suspicious about anyone who appears to live beyond their means.
11. 11-If something seems odd, whether it is a disbursement to an unfamiliar vendor or an unexpected expense, check it out and don't accept a casual explanation.

Following these simple steps will catch 99% of all instances of employee fraud.

Feel free to share this article with a business associate or client who could benefit from this blog post. Your support in spreading this important information is greatly appreciated.

Remember, it's important to BE THE ROAR, not the echo®. Take charge of your business's financial security and stay vigilant against fraud.

Warmly,

Janet Behm, The Tax Wizard