Many organizations and businesses experience fraud every year due to their employees or business partners. The most vulnerable of them are new start-ups and small businesses. The risk of fraud has increased even more ever since the advancement and development of technology. Now, it is easier than ever to steal and conceal the theft.
It is possible to protect yourself from such theft. However, there are a few things you should keep in mind. The key is to be proactive and alert regarding your employees. Stealing is usually triggered in a person due to a change in their life, such as medical issues. There might be other factors like gambling. Click here to look for an experienced and loyal Phoenix accountant.
Warnings signs your accountant is stealing from you
- You see changes in employees’ habits.
When an employee goes through a major change in their life, you might be able to observe their changed behavior. They might become less focused, disorganized, and withdrawn from work. Sometimes, they may make too many personal calls while at work. Even though not all such changes are linked to fraud, it is important to keep them in mind.
However, if your bookkeeper or any other employee with access to the company’s books is going through such changes, you might want to become more alert. Watch out for new behavioral changes, such as visiting the office during off hours or on holidays, working through vacation, etc.
- Suspicious financials.
This could be a serious problem when budgets are not meeting as they should, or the company’s finances are not being delivered on time. Some questions you should ask yourself during such a time include:
- Are the payees mismatched?
- Are the vendors reliable or questionable?
- Have there been any unusual cash transactions?
- Do the suppliers of vendors have unprofessional invoices?
It can also be a warning sign if things look too good to be true.
- Your accountant is in bad waters.
Everyone experiences some sort of financial stress at least once or twice. When an accountant faces financial trouble at home, it could trigger fraudulent activities at work. Financial trouble could result from expected debt (gambling, drinking, divorce), spending more money than they earn, and having loose financial controls.
If your accountant in Phoenix seems to live a lifestyle out of their financial league, it could be a sign that they are stealing. Additionally, you should keep an eye on your company’s internal controls and see if there are opportunities to steal. Easy access to the company’s books leads to embezzlement.