Small and medium sized businesses are particularly vulnerable to fraud as it is difficult to achieve good segregation of duties within a small team. They can also often have a “family” or “team” culture in which an internal fraud seems unimaginable. However, as we see in the press far too often, and many are not disclosed publicly, fraud does happen, and it can destroy a business by removing vital cash from the working capital of the business.
It’s always worthwhile reviewing your financial controls to ensure you are not vulnerable to the enemy within. The most important is to ensure that payments are not set up and released by the same individual. Build in regular management reviews of financial statements to include key control areas, and don’t just leave it until the year end accounts are produced to ensure you have support for your Balance Sheet items. Some simple steps now will allow you to sleep better at night knowing your money is safe.