Daniel Cullinane CPA

25 Plaza 5 25th fl Jersey City NJ                                          phone 732-516-1648 fax 732-516-9778

MBA Taxation

Daniel Cullinane CPA

2500 Plaza 5 25th fl  Jersey City NJ 07311                                                          phone 732-516-1648  fax 732-516-9778

                 MBA TAXATION                                                                                                         

Copyright ©​ Daniel Cullinane CPA.

​An accountant insists that he or she handle activities for which other departments are normally responsible. These can include picking up the mail or acting as the sole go between with the company's financial contacts.
An accountant continually misfiles important items such as payroll receipts, deposit records, supplier correspondence and estimates.
Deposits frequently seem too small. Owners should always carefully monitor income and deposits, comparing sales against actual deposits.


Usually, there are no sure fire tip offs to internal accounting fraud. By being on the lookout for any of the seven danger signs, a small business can avert a potentally disastrous and embarrassing financial loss.




SET UP FREE CONSULTATION TODAY


​SEVEN SIGNS OF INTERNAL ACCOUNTING FRAUD



​Many small business owners feel that their companies are immune to internal accounting fraud and embezzlement for two reasons: they do not have many employees, and the ones who deal with money are usually close to the owners. Regardless of size, any business is vulnerable to fraudulent activities by employees. Following up on signs of fraud can stop accounting theft, saving a company from financial loss or ruin. The signs are:


  1. ​An in-house accountant works without direct supervision on every aspect of a company's financial operations.  When one trusted bookkeeper or accountant is responsible for records, payroll, receivables, deposits, payments, ect, the company is placed at risk for fraudulent activity.
  2. An in-house accountant refuses to follow recently established accounting and or payroll guidelines.  In such a case, owners should demand that guidelines be strictly followed and investigate financial and payroll records for up to several years in the past.
  3. An accountant continually works after hours, comes in frequently on weekends or insista on taking work home. Fraudulent activity are easier to accomplish when work is unobserved and unsupervised.
  4. An accountant refuses to take a vacation. This individual may be thought of as a highly dedicated and hard working employee, but could be that he or she simply does not want anyone to discover how the books are.