There’s never a good time to encounter fraud or reckless spending within your business. In the age of the coronavirus, especially, many small business owners are more concerned than ever with the state of their accounts.
Yet fraud occurs more often than you think. Penny Breslin, the owner of MoneyPenny Back Office Accounting Services , has been in the accounting industry for over 20 years. During that time, she and her team have uncovered millions of dollars in stolen or missing cash. Now, she estimates 10-15% of the accounts she’s encountered have had at least some instances of fraud.
“But it’s not just fraud,” she says. Breslin says unconscious money mistakes, banking errors, or overspending without a system of checks and balances can all wreak havoc on business financials.
The good news is business owners can take steps to prevent fraud and other financial errors. The No. 1 secret recommended by bookkeepers? Reconcile your accounts monthly.