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Furever Bookkeeping & Accounting Services Logo

Average Rating:
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Behind On Your Books,
Business Owners?

Let Me Rescue Your Financials Today!

Behind On Your Books,
Business Owners?

Let Me Rescue Your
Financials Today!

If you’ve discovered financial fraud (or suspect it) in your business, then you’ll want to tread lightly and learn how to prevent and recover from fraud. 

The primary goal to detect or identify financial fraud in your business is the relationship between your accounts, your transactions, and your employees.

This relationship is what shows you where potential fraud occurred (and where fraud may occur in the near future). 

Below, I’ll share how to prevent financial fraud, as well as some basic steps you can take to clean up financial fraud once it already occurs. 

While what I share in this article is useful, let me take care of your accounts for you, so you can get back to focusing on growing your business.

I’m your Outsourced Accounting Department for a third of the cost!

How to Prevent Financial Fraud in Your Company

There are three major ways you can prevent financial fraud: 

#1. Restrict access to your accounts or, give person-specific credentials.

For those permitted, allow access to your accounts for the specific jobs and responsibilities given. Only the most trusted employee, freelancer, or consultant should ever have access to your accounts. Conduct a background check on each individual or, if you’re outsourcing, ensure that there is a clearly defined Services Agreement spelling out Confidentiality, access, etc.

#2. Close each accounting period

Have you ever heard of “hiding in plain sight”? This is how fraud usually occurs and goes unnoticed for months or even years. The fraudulent actions take place in plain sight – in accounts that are either not closed at the end of each period or not reconciled to current. When accounts are not managed properly, it allows for miscellaneous or ill-defined transactions to happen without anyone knowing. Closing account periods also disallow hiding fraudulent transactions in prior years. 

#3. Set up and manage employees/staff with their own usernames and passwords

If your current accounting system uses “admin” for the username and everyone uses it, then you have no idea who’s actually in your accounts causing mayhem. Yes, creating usernames and passwords for each employee/staff may be an extra step, it helps protect you, your cash, and your company from becoming the target of financial fraud. 

With that being said, this is not an exhaustive list, but it’s a start for you to prevent financial fraud in your business.

How to Reveal Financial Fraud in Your Business

The primary goal is to identify the following in your accounts to pinpoint the fraud and how it happened:  

  • Differences that are not expected
  • The absence of differences that are expected
  • Potential errors
  • Potential fraud and illegal acts
  • Other unusual or non-recurring transactions or events

How do you determine fraud, where it happened, and how? A fraud examiner will use the following tools to review your accounts and give you a detailed breakdown of what went wrong: 

  • Comparative Techniques
  • Financial Relationships
  • Assets Versus Liabilities
  • Sales Versus Cost of Goods Sold
  • Sales Versus Accounts Receivable
  • Sales Versus Inventory
  • Profit Margins
  • Unexpected Relationships 
  • Percentage Analysis—Vertical and Horizontal
  • Financial Ratio Analysis
  • Current Ratio
  • Quick Ratio
  • Debt-to-Equity Ratio
  • Profit Margin Ratio
  • Receivables Turnover Ratio
  • Collection Ratio
  • Inventory Turnover Ratio
  • Average-Number-of-Days-Inventory-Is-in-Stock Ratio
  • Asset Turnover Ratio
  • Cash Flow Analysis

Each and every one of these approaches (and more) helps reveal and identify financial fraud in your business. 

Once you determine the fraud, how it happened, and who committed it, what’s next?

How to Reconcile Business Financials After Accounting Fraud

You could reconcile your own accounts after financial fraud, but it would take you weeks to months or even years to do it yourself. 

Instead, you can bring on a fraud examiner to dig into your accounts and complete the process and approaches shared in this article (and more). 

Better yet, outsource your Accounting Department to me, the Top Rated® Expert Accountant, and prevent fraud from ever occurring to begin with.

Let me be your Outsourced Accounting Department for a third of the cost!

“OUR FINANCIAL SAVIOR."

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Furever Bookkeeping has been our financial savior. Our small business went through several bookkeepers before hiring Furever Bookkeeping. Furever Bookkeeping has been responsive, adaptable, and provided excellent communication throughout the pandemic. The level of customer service we have experienced is unmatched for a small business such as ours.

-Orman M.

“KENDRA BROUGHT YEARS OF MY BUSINESS’S FINANCIALS CURRENT AND BALANCED MY BOOKS QUICKLY.”

⭐⭐⭐⭐⭐

Kendra brought years of my business’s financials current and balanced my books quickly. She and the whole furever bookkeeping squad know what they’re doing. Helped my business exponentially.

-Charlie U.

“I CAN ASK HER ANYTIME WHERE WE STAND FINANCIALLY AND SHE CAN TELL ME INSTANTLY.”

⭐⭐⭐⭐⭐

Kendra served as our law firm’s outside, independent bookkeeper. When she started working for us she inherited financial books that were a complete mess. She was able to straighten them out and, since then, has kept our books accurately and complete. I can ask her at anytime where we stand financially and she can tell me instantly. She is very personable and a delight to work with. During her tenure working with us, even though she was an independent contractor, she became our firm’s CFO. I do not hesitate to recommend her.

-Fred P.

“KENDRA AND HER TEAM ARE GEMS.”

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The entire Furever Bookkeeping team helped my Consulting Firm and me streamline our Accounting system using technology for efficiency sake. This saved us a ton. Kendra and her team are gems.

-Patricia F.

“KENDRA HAS BEEN INSTRUMENTAL FOR OUR BUSINESS.”

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Kendra has been instrumental for our business. If you are looking for an accounting team that is professional, timely, and great at communicating call Furever Bookkeeping. They were a life saver for my company!

-Renee D.

“KENDRA’S TEAM IS TOP NOTCH AND RECONCILED BACK YEARS UNDER BUDGET.”

⭐⭐⭐⭐⭐

Kendra’s team is top notch and reconciled back years under budget. Thanks to the entire team. We continue to grow as a direct result of her knowledge and strategy.

-Brian D.

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Kendra Moore
Owner/Master Bookkeeper
Expert Accountant

Clients

Our clients range in annual revenue from $200K up to in excess of $75M+. Simple or complex financials across MULTIPLE industries are our Core Capabilities.

About Us

Furever Bookkeeping, LLC brings 15+ years of Expert Bookkeeping & Master Accounting to each of our clients. Kendra Moore and her team have over 37 years experience in: Bookkeeping, Accounting, Banking, along with experience as previous Business Owners.

Our Certifications

We are approved Accounting & Bookkeeping Federal Government Contractors, DUNS #079524284, as well as for the State of Maryland, NAICS #541219.

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