Businesses of all sizes need to be deeply concerned about fraud, and smaller ones are no exception. Employee theft can easily stop a company from getting off the ground or otherwise reaching its overarching goals. Fortunately, this crime is preventable.
According to Scoop News, one of the big dangers that comes with fraud is the potential for these events to impact an organization's credit rating. If a staff member begins taking funds meant to pay vendors or other bills, it's possible that it, businesses will be caught in a rut.
Entrepreneur Magazine stated one of the common and potentially devastating ways to steal company funds is making fraudulent duplicate payments. While duplicates often occur by mistake, they can also be used consciously as a way to embezzle money. When paying vendors, bookkeepers can make separate, smaller payments to themselves but code the transactions as going to the service providers. This method can be challenging to detect.
Fraud prevention starts with implementing the right accounts payable audit solutions. With these tools, business owners can more easily identify instances of unauthorized spending and rectify the situations before they cause significant damage to organizations' ability to stay up and running. While it may seem like a big investment to deploy AP audit technologies, the role these play in keeping finances healthy is well worth the up-front cost.