Some Precautions Regarding Fraud and TheftPrecautions to Help Protect Your Assets There is a lot of news about theft and fraud these days. One article I read recently said to advise your business clients about some simple things they can do to reduce fraud. 1. Make sure the person who receives incoming payments is not the same person who records the payments to revenue received in the accounting system. 2. Reconcile the incoming payments that get posted to the records with the monthly bank statement. This is very important in any case. 3. Keep your checkbook and checks in a safe or safe place. If possible, make sure the person who writes the checks isn't the same person who signs the checks. 4. Make sure you review the bank statements and images of the enclosed checks. 5. With all of the automatic payments, bank charges and transfers that show up, make sure they can be identified. Credit card statements should also be reviewed carefully. Make sure they are a company expense and not an employee's personal expense. With the market as shaky as it is today, some investors are still listening to their broker's advice. I read in the Wall Street Journal, a few suggestions for due diligent research: 6. If your broker tells you that his research reports support a certain investment, get a second opinion before you make the purchase. Check websites like Google Scholar and SSRN.com to do some research on your own. 7. Continue by going to websites like SEC.gov which are helpful for offering fast answers on how different investments products work. MoneySmart.com, created by an AARP subsidiary, can help translate commonly misunderstood financial terms. And don't forget me! 8. Look for good business books. Personal finance books top the list of business best sellers. Some are allegedly easy to read and understand. 9. The article concluded by saying; consider-fee-only-advisers for independent research. They tend to be more academically oriented. As always, if you have any questions, please feel free to contact us.
Joseph W Donelon CPA | 09/14/2010
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