Billing fraud is the most common type of fraud that small businesses experience, accounting for 27% of all fraudulent activity.
Billing fraud primarily occurs in one of three ways, when employees:
While employees may justify their illegal actions due to need or entitlement, billing fraud ends up costing small businesses billions of dollars every year.
Shrewd business owners understand the benefits of outsourcing accounting functions. Utilizing an accounting firm maximizes business value by improving financial reporting accuracy and timeliness, allowing for better strategic planning, and reducing tax burden. However, these benefits depend on a solid working relationship with an experienced accounting firm. When there is a poor fit or the firm is performing inadequate work, its value is likely lower than expected. In extreme cases, business objectives and strategic growth plans can also be stymied.
If you notice any of these critical issues, it may be time to fire your accounting company:
One mistake that unites all small business owners is trying to do too much in-house. Small business owners are naturally cost-averse, which makes them less likely to outsource financial needs when they arise. They are far more likely to bumble through the numbers related to essential projects themselves or consult a bookkeeper for ad hoc assistance rather than hire a specialized accountant to do the job.
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