September 20, 2018

Prevent Bookkeeping Frauds: Outsource Your Accounting Services to Save Money!!!

A 2016 study conducted by the Association of Certified Fraud Examiners states that small businesses and startups are more susceptible to frauds. Also, around 30% of the organisations having less than 100 staffs fall prey to employee scams which remain undetected for 18 months. However, corruption is the common factor behind frauds, irrespective of the organisation size and staff members.


Fraud occurs when two or more corrupt employees join hands to deceive seniors that have insufficient knowledge of bookkeeping and accounting. Unfortunately, we don't have any reliable employee screening protocols to prevent a potential fraudster from polluting the workspace. The best way to check bookkeeping frauds is to hire accounting services of a skilled and reliable agency. It helps lock the door to in-house collusion.


In the next couple of paragraphs, we shall find out how outsourcing accounting services prevent frauds!!!

Your In-house Staff is Kept out of the Loop

Outsourced accountants or bookkeepers work from outside the office to meet the requirements of a client, as per the company's request. Since most of their tasks are managed by the secure accounting software run on the cloud or server, your in-house staff cannot access the financial data, as it is remotely controlled.


You have More Resources to Battle Cons

Many businesses incur huge losses because they have fewer resources to combat this threat. When you outsource this task to an accountant or agency, they have the required expertise to detect in-house swindles. They frequently check the flow of money within the company and keep tabs on daily invoices, bills, and receipts thus, reducing the risks of frauds.
Outsourced management offers companies access to software and security protocols for fraud prevention, which the hiring organisation may not be able to afford under normal circumstances. An added advantage is that the cost of hiring a freelance accountant is comparatively less than maintaining an in-house finance team.


Multilevel Security Checks Keep Offenders at Bay

The biggest issue while maintaining an in-house facility is that bookkeeping, accounts payable, accounts receivable and employee payroll is managed by different people, under the supervision of the accounts manager. This increases the risk of employee collusion in a scam. However, when the entire procedure is handled via updated software by an external agency, false entries are detected faster.


Moreover, outsourced tasks are screened at multiple levels to ensure maximum security, as the hired agency or person has to uphold its reputation in the market.


Other Benefits of Outsourcing Accounting Jobs

Outsourcing accounting job is the best way to outsmart scams as it addresses and eliminates the significant causes of multi-million swindles like:


  1. Messy logbooks
  2. Cheque tampering
  3. Greedy employees
  4. Skimming
  5. Fake time cards
  6. Errors in bank reconciliation
  7. Irregular audits
  8. Forged invoices or bill copies

Outsourced experts use software to lock down prior entries and time cards, set up a closing date password on reports, conduct audit trail reports to manage daily/weekly transactions and payrolls, and set up internal accounting controls to avoid frauds at the department level.


Outsourcing separates in-house activities from accounting duties. It provides peace and a greater sense of security to business owners. It is true that frauds happen when accounts are run on employee trust alone. Therefore, you must hire an expert to manage your funds.

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