How to Spot + Stop Fraud in Your Finances
Fraud is everywhere, and although it may feel unavoidable at times, there ARE ways to catch it + prevent it.
Fraud can happen in any business, no matter the size. It often starts small - an unapproved expense, a missing transaction, a duplicate payment. If left unchecked, these little red flags can turn into serious financial losses. The good news is that most fraud is preventable when you know what to look for and have the right controls in place.
Warning Signs of Fraud in Your Business
1. Unexplained transactions or missing money that doesn’t match your records
2. Duplicate payments to vendors or employees that go unnoticed
3. Inconsistent financial reports or numbers that don’t add up
4. Unauthorized payroll changes, unusual refunds, or inflated expense claims
5. Vendors you don’t recognize or payments sent to unfamiliar accounts
6. Large cash withdrawals or excessive payments that don’t fit normal business activity
How to Prevent Fraud in Your Business
1. Reconcile your accounts regularly to compare your books with bank statements + catch any unusual activity before it becomes a problem
2. Limit financial access so only the most trusted team members handle sensitive financial data + banking details
3. Use secure payment systems + avoid excessive cash handling to ensure payments are tracked + approved
4. Set up approval processes so large purchases, payroll changes, + vendor payments require multiple approvals
5. Review your financial reports often to stay on top of your Profit + Loss statement, bank reconciliations, + transaction history
6. Encourage transparency by creating a culture where employees feel comfortable reporting suspicious activity without fear
Fraud can be costly, but prevention is always easier than fixing the damage later.
If you need help keeping your books accurate + secure, let’s chat. I’d love to help you safeguard your business finances. Contact me today to learn more.
Rooting for you, always!
Is Your Business Budget Working For You?
Is your budget helping your business, or has it been awhile since you even looked at it? Here’s how to make your budget work for you.
Many business owners create a budget once, feel good about it and then don’t look at it again until the following year. But if you’re not reviewing your budget regularly, it isn’t helping you in the way that it could be.
Business isn’t static. Prices change, revenue shifts, expenses creep in and unexpected things pop up. So your budget needs to adjust with you. Here’s how to check if your budget is still working and what to do if it’s not:
Step 1: Look at your actual numbers
Open your Profit & Loss report and compare the last 3–6 months of real data to what you originally planned for.
For example, you might’ve budgeted $200/month for software but now you’re spending $325. Or you expected to bring in $8k/month in revenue for a particular service but you’re averaging closer to $5,500. That’s a clue something needs adjusting.
Step 2: Spot what’s changed
Have you added a new team member? Started a subscription you forgot to budget for? Maybe you’ve invested more into marketing or ads than planned.
Changes are normal, but if your budget doesn’t reflect them, it can throw off everything from cash flow to tax planning.
Step 3: Reconnect it to your goals
Your budget should help you move toward your goals, not just track what you spent. If your focus is growth, is your spending aligned with that? Are you investing in the right things?
Do your numbers support your goals for upcoming launches, promotions or marketing pushes during your busier times?
If your books are messy or your reports don’t make sense, it’s nearly impossible to review your budget accurately. That’s where I come in.
I’ll clean up your books so that you have accurate numbers, help you identify and track relevant KPIs and walk you through how to review your financials with confidence. Contact me today to learn more.
Rooting for you, always!