Nonprofit Internal Controls: The Essential Guide to Fraud Prevention
Nonprofit internal controls were the missing piece that led to a significant loss of funds for a beloved community organization we recently reviewed. Sadly, the cause wasn’t a sophisticated cyber-attack but a simple lack of oversight in their accounts payable process. Consequently, this vulnerability allowed a trusted volunteer to divert small amounts of cash over […]
Embezzlement Prevention: How to Detect and Stop Employee Theft
Effectively, preventing embezzlement is one of the most uncomfortable but necessary responsibilities of a business owner. Sadly, employee theft often starts small—a disguised invoice here, a personal charge there. Specifically, without proper controls, these small leaks compound into devastating losses. Below, we outline exactly how to detect red flags, implement segregation of duties, and stop […]
Bookkeeping Ethics Guide: Integrity, Controls & Audit Readiness
Effectively, maintaining high bookkeeping ethics is not just an abstract concept; it is the set of everyday behaviors that keep your numbers trustworthy. However, many business owners view ethical controls as optional “red tape” rather than essential protection. Specifically, without these standards, you invite errors, penalties, and significant fraud risk. Below, we provide a practical, […]
Bank Reconciliation: The Hidden Control That Stops Fraud and Saves Your Cash Flow
Recently, I reviewed a client’s books who believed their cash flow was tight due to low sales. In reality, their sales were fine, but they were leaking money through duplicate payments and uncancelled subscriptions that no one had noticed for months. For instance, without regular checks, a $50 recurring charge or a double-paid invoice can […]
Do Bookkeepers Reconcile Bank Accounts? The Ultimate Guide to Cash Accuracy
Recently, I’ve fielded a surprising number of questions from new business owners asking a fundamental question: do bookkeepers reconcile bank accounts as part of their standard service? In reality, this isn’t just a “nice-to-have” add-on; it is the absolute backbone of accurate financial reporting. For instance, without reconciliation, your accounting software is merely a list […]