One of the most effective ways of minimizing the risk of fraud is through outsourcing your bookkeeping and control functions to an experienced professional. This ensures that every transaction is checked for accuracy.
Outsourcing the bookkeeping function requires you to seek the services of a competent firm for your business accounting needs instead of hiring full-time employees to handle it.
A lot of companies globally nowadays outsource substantial functions in their business operations and slowly, what recently used to be new to businesses is now becoming a tradition especially for small and medium-sized businesses.
Staffing for payroll, receivables, and taxes can be very costly especially for small businesses with low revenue levels. Outsourcing minimizes unnecessary expenses for small businesses allowing them to spend the saved money on other important areas that increase the efficacy of an organization.
Companies without CFOs experience the highest levels of fraud. A CFO assesses and detects any abnormal activities in the transactional data. Due to the high costs associated with hiring individuals for such positions, most small companies run without them and as a result, fraud gets perpetuated.
Bookkeepers implement accounting controls in businesses that help detect and prevent fraudulent activities by up to 50%.
Outsourcing affords small businesses what would be described as CFO services to help prevent business losses, provide guidance on keeping proper books of accounts, among other things.
Fraud cases start in very insignificant ways and increase with time – this means the perpetrators of fraud are likely to go unnoticed in small businesses without proper controls in terms of systems and qualified personnel. You shouldn’t wait to experience this; in the recent past, fraud in small businesses has been on the rise.
However, with outsourcing, things could change for the better.
Hear me out on this…
The more people you have overseeing your books of accounts, the less attractive your company becomes to fraudsters. In fact, most unfaithful employees have been known to switch jobs from such companies, talk of bowing out honorably. Other than providing your business with the protection it needs, outsourcing also gives you the peace of mind you so much deserve.
Other Reasons Why Companies outsource their Bookkeeping Function
The ultimate cost and aftermath of fraud in accounting records can be quite devastating. A 2014 Report by the Association of Certified Fraud Examiners approximated the average loss of money due to fraud in various companies to be about $145,000 every year. The report further noted that the most affected group is the small and medium-sized companies.
Well, now you know!
I hope you found this post useful – and should you need the services of a professional bookkeeping firm, don’t hesitate to drop us an inquiry and we’ll be happy to offer our assistance.