Commercial fraud occurs on a regular basis and is often only detected after thousands or even millions of pounds have gone missing. One of the main reasons for this happening is that the person or people who own the business don’t have any knowledge or experience finance and accounting.
The repercussions of a business being hit by commercial fraud can be that customers lose their confidence in the company and potential investors are put off. This can be very detrimental to the business and the prospect of this can even result in companies not reporting incidents of commercial fraud.
One of the best ways to prevent commercial fraud is to employ an accountant from an outside firm. Ensure that references are obtained and actually checked. Don’t just rely on qualifications. Also but regular checks in place including inventory control, monthly bank account checks, financial statement checks and payroll register reviews.
By keeping a close eye on the financial and accounting side of your business, you can prevent commercial fraud happening to your company.