“Prevention is better than the cure”
Accounting is one of the most important departments in any organization that needs attention to details. More successful the business is, more arduous the accounting gets. Maintaining in-house accountant can sound favorable for small businesses. But as the business grows, the accounting team needs to grow as well.
Since accounting is complex in nature and is evolved by risks, the number of fraudulent transactions are prevalent. Hence leveraging the collective knowledge base of a group of top professionals specialized in accounting and bookkeeping is required.
Accuracy is the key:
Preparation and maintenance of day-to-day bookkeeping and monthly/quarterly accounts, is a routine task that needs to have utmost accuracy. As the business grows, the process gets more complex and hence it is wiser to outsource the accounting to the experts who makes use of accounting softwares to ensure data integrity and accuracy.
Outsourcing avoids the risk of fraud as prevention and detection can be automated. Different key roles are identified and shared among the team. Thus, a mismatch of numbers can be mapped to any individual contributor.
Minimize the risk of fraud:
Majority of the fraudsters and embezzlers are first time offenders with clean record. On average, fraud continues for 18 months before it’s going to be detected. Outsourcing accounting and bookkeeping eliminates this problem.
Allocation of duties is imperative as primary accounting functions like authorization, record keeping and custody of assets should not be handled and controlled by one individual. No employee should have control over these 3 primary accounting functions. Switch to electronic checks instead of paper check as it will limit the chances of fraud.
Payroll fraud control:
- Outsource payroll to automated billing system.
- Fraud detection tool offered by your outsource accounting partner will match the account number, check number and amount.
Billing fraud control:
- Match invoices to purchase order.
- separation of duties, bill payments and bank reconciliation.
- Use of electronic bill payment.
- Review the approved vendor list.
- Scan bills, then link them in QuickBooks in matching transaction.
A lot of small and medium business establishments, tax firms and CPAs around the world struggle with time restrictions during the busy tax season and deal with reduced utilization during the off-season. Inconsistency in tax processing is another problem in small and medium businesses. Outsourcing tax returns is the best solution where it eliminates both utilization issue and fraud.
An ideal tax outsourcing company can help you deal with the nuances in accounting but also eliminates the problem of fraud. Outsource your accounting and concentrate on productivity.