Protecting Yourself Against Bookkeeper Fraud

With the rash of recent media stories aboutbookkeeper or staff for the sake of convenience.
bookkeepers defrauding their employers, weBut it means that cheques to unknown payees
thought it was time to offer a few tips that couldand in unknown amounts can easily be made out -
keep the same thing from happening to you.and the fraud doesn't even have to forge your
First of all, realize that the person who defraudssignature!
you could be the person you least expect. Would3. Never give signing authority on your bank
you think a church bookkeeper who had held heraccounts to a bookkeeper. You open yourself to
position for close to 20 years was a fraud? No?abuse if your bookkeeper has legitimate power to
Neither did the church. And the bookkeeper bilkedwrite cheques without your knowledge.
the organization for hundreds of thousands ofBe the first person to open and check your bank
dollars.statements each month. Question any entry or
Since you can't live your life in a state of constantcheque that you don't recognize. Bookkeepers
paranoia, suspecting every person who crossesoften go years without being detected simply
your path, here are a few safeguards you canbecause they are the only ones who actually
use to minimize the chances of fraud happeningwatch what goes through the bank accounts.
within your organization:4. Separate your bookkeeping and accounting
1. Never give your online banking information toroles. Two pairs of eyes on your books can
anyone, period. Password access to your accountprovide a critical set of checks and balances. The
is just an engraved invitation for someone to dipaccountant can review the bookkeeper's records
his hands into the cookie jar. By the time youand vice versa, ensuring each person is held
realize the money is gone, your bookkeeper couldaccountable and deception is more likely to be
be too.caught.
2. Never have blank signed cheques anywhere.Be smart and be aware. With a little caution, you
This is a common mistake; many businesscan dramatically reduce your chances of being
owners leave signed cheques with theirvictim to fraud.