These days, forensic accountants are hard at work unraveling the messes frequently left behind by employees with vendettas, or just a desire to make a quick buck regardless of the cost. According to recent reports, those companies hardest hit by fraudulent employee activity are small businesses and nonprofits, leading more experts to recommend third party small business accounting services as a security solution.
But for many who have yet to embrace the notion of outsourcing a duty that has for so long been a uniquely internal one, the idea of transmitting their financial statements online via encrypted channels is still a bridge too far.
To get at the root of the deep mistrust of technology that’s prevented many businesses from assigning their bookkeeping needs to external small business accounting services, all you have to do is take a look around at recent news stories concerning certain Fortune 500 companies losing internal customer databases to hackers, and you’ve got a recipe for instant mistrust of online channels.
The fact remains, however, that outsourced small business accounting services offer some of the best security encryption for the transmission of daily business transactions and financial statements online. And the glaring absence of internal controls within small companies and nonprofits to help identify warning signs of fraudulent employee activity is driving the push toward the outsourcing of accounting duties.
Whether you represent a company that’s fallen victim to internal fraud in the past or you’re simply pondering the possible devastating effects it can have, it’s critical to keep an eye open to alternative methods of accounting that can safeguard against such occurrences. Third party accounting services offer clear and transparent data trails, and have the kinds of checks and balances in place that’ll keep the forensic accountants as idle as possible. Considering what their presence implies, this is most definitely a good thing.