FBIS Will Conduct a Forensic Accounting Investigation of Your Atlanta Business!
Tax season brings many groans, but the process of filing taxes gives businesses an opportunity to detect theft or embezzlement. Internal fraud has long-reaching effects on businesses, and it must be caught early so that you can right the wrongs. If you suspect fraud at your company, Forensic Brothers Investigative Services will conduct a thorough forensic accounting investigation of your Atlanta business and dismantle the fraud at the source.
What are the Effects of Fraud?
Fraud can have long reaching effects on a business, especially when it continued for a long time. If an employee committed tax fraud, your company may be subject to fines from the IRS. But paying these fines isn’t the end of the road. Financial loss is the most obvious consequence of fraud. If an employee steals from your company, you will lose profits, even in a record year for sales.
You can also lose customers and business partners. If word gets out that there was fraud at your company, customers will not want to do business with you, and fellow business will look for different partners.
Fraud also upsets the inner workings of your business. Employee morale goes down and employees lose trust in their superiors, especially if the fraud was committed by someone with a high position of power. It also makes it harder to hire new employees.
What are Numerical Signs of Fraud?
Although each case is a little different, there are some common signs that an employee may be committing fraud. If you see these signs, you should have a professional investigate and get to the bottom of it.
Unexplained Expenses
Analyze your company’s financial statements and other documents. Look for unexplained changes in profit. Analyze expense reports and verify that all reimbursements of expenses are approved.
Bank and Credit Card Records
Look at your company’s bank and credit card records to see your company’s payments to vendors. Check that they match accounting records.
Vendor Changes
Look for changes in vendor information. Check for unapproved vendors and see if any vendors’ addresses match employee addresses. Make sure there are no missing accounting documents.
Inventory Levels
Make sure inventory levels match company revenue. Check for unexplained declines in inventory levels.
Check Customer Credits
If a customer account has a large number of credits, it may mean that an employee is crediting the customer but keeping the excess money after the customer sends in their payment.
Look at Accounts Receivable Records
If there are several accounts receivable accounts past due, it may be because an employee is not posting the received payments to the customer’s accounts.
Signs of Fraud in Employee Behavior
Besides the numbers, the behavior of your employees might indicate sinister actions. If you notice a change in an employee’s behavior, you might want to look into their actions.
Luxurious Lifestyle
Did one of your employees get a fancy new car or start wearing designer clothing? If someone at your company lives a lifestyle that doesn’t match their salary, it could indicate that their money comes from dishonest methods.
Secrecy
If one of your employees refuses to let others work with them or check their work, it may be because they have something to hide.
Tips
Look into any tips about your employees. 42% of employee fraud cases are detected from tips.
Breaking Rules
Embezzlement requires a certain amount of risk. This means that employees who commit fraud often start by breaking small rules and then work their way up. If an employee starts breaking more and more rules, you might want to look into their work.
Working Overtime
If someone frequently arrives early or stays late, they may be committing fraud. What looks like dedication to the company could actually be a cover for something suspicious.
Look to Us for Forensic Accounting Investigation in Atlanta!
If you suspect fraud at your company, your next step is to hire a professional to investigate. Forensic Brothers Investigative Services conducts a wide range of investigations including financial crime investigation, data analytics, and forensic accounting investigation in Atlanta. Give us a call at (678) 915-1802 or contact us online to start your investigation today!
