How to Take a Proactive and Diligent Defense Against Payroll Fraud

Deviations of money and other kinds of financial fraud are perhaps the most common type of theft on the part of employees. Small businesses tend to be victims of fraud because they do not have the necessary controls to prevent it, especially when it comes to Payroll services. Use the following tips to help protect your business from unethical people who can be part of their staff.

 

Separate duties

 

An employee should not control a financial transaction from beginning to end and when it comes to Payroll services many people should check it along the way. The person completing the checks should never be the same as the signs. The person who opens the mail should not also record the accounts payable and reconcile the accounts. Dividing responsibilities, you make it harder for someone to steal and manipulate the records to cover up the fraud.

Do not be careless with the company checks or Payroll services. Keep them in a locked drawer and do not provide the key. Use pre-numbered checks, and check often no checks missing. Use a procedure “voided check” that requires you (the owner) to validate all item cancellation. Require all checks above a certain nominal amount to have two signatures (one of which is yours), and never, ever sign a blank check.

 

Sign each sheet of paycheck personally

 

This may take some time, but usually worth it. Review the checks to make sure that they are intended to known people. If there is a name you do not remember, locate the person. Keep a weekly count of the number of people on the payroll and compare that number with the number of issued checks. Ensure that you cannot change the master file payroll of your company without your approval and signature. Another option: have a separate bank account for payroll, and deposit it the exact amount of the sheet, insisting, then a prompt monthly reconciliation. More explained here.

 

Keep an eye on accounts receivable

 

Involving more than one employee in the accounting and verifying incoming receipts. Make sure that all incoming checks are properly endorsed. Buy a stamp of “deposit only” and use it on all incoming checks, as this can prevent an employee the cashes. Personally investigate customer complaints on credits not received payments. Get a copy of the front and the customer’s check back and make sure that it has been deposited in the account of your company.

 

Always have good bookkeeping workers or hire Payroll service australia to help

 

An employee who is embezzling; need What To Do If You’re Not Ready to make a continuous effort to conceal this kind of theft. Many owners of small businesses are surprised to find that apparently loyal employees – who never take vacations or missing due to illness – are actually stealing the boss. The reason these people need to be in the office constantly is to erase the traces complicated paperwork. Insist that employee responsible for accounting / bookkeeping to take vacation every year. Ideally, your vacation will last two weeks take place at the end of a month when the books are closed. Use this time to ask the other person to examine the books looking for discrepancies. If you don’t have who to trust.