Shielding Your Business: Outsourcing Accounting as the Guardian Against Internal Fraud
Authored by Christopher Austin, President of Ardiah Managed Services
Hello, vigilant business leaders and discerning entrepreneurs! Today, I am excited to delve into a critical topic that resonates deeply with the safety and prosperity of your enterprise – internal fraud. As the President of Ardiah Managed Services, I am here to not only uncover the vulnerabilities that businesses face but to reveal how outsourcing accounting can be your fortress against losses and reputational risks.
A Sobering Reality: The Cost of Internal Fraud
In the ever-evolving landscape of business, internal fraud casts a shadow that can darken even the most promising ventures. According to the Association of Certified Fraud Examiners (ACFE) 2022 Report to the Nations Global Study on Fraud and Abuse, the average business stands to lose a staggering 5% of its gross revenues to fraud. This statistic should give every business leader pause, as it sheds light on the substantial financial impact that internal fraud can have.
Small Businesses at Risk: Lack of Internal Controls
The 2022 ACFE report underscores a concerning trend – private companies, especially small businesses, bear the brunt of occupational fraud. Occupying a staggering 42% frequency of fraud compared to large corporations, government entities, and non-profits, small businesses are particularly vulnerable due to the lack of internal controls.
The Real Cost of Uncontrolled Fraud
Let’s take a closer look at some compelling statistics:
Median Loss for Small Businesses: The median loss for private companies, including small businesses, stands at a significant $150,000.
High Frequency: Small businesses consistently top the charts in terms of fraud frequency, with an average of 28% compared to larger organizations ranging from 22-26%.
The Methods and Schemes of Fraud
Fraud is a multifaceted challenge, manifesting through various schemes and tactics. Some of the most common methods include:
- Billing Schemes
- Wire Transfer Schemes
- Expense Reimbursement Schemes
- Register Disbursements
- Payroll Schemes
- Cash Larceny
- Check Tampering
- Inventory Theft
- Financial Statement Fraud
- Corruption Schemes
The Outsourcing Advantage: Your Shield Against Fraud
Outsourcing accounting functions to experts like Ardiah Managed Services provides a formidable defense against internal fraud. Here’s how:
1. Expert Vigilance
Our seasoned experts bring an objective, impartial perspective to your financial operations, detecting anomalies that might otherwise go unnoticed.
2. Segregation of Duties
Outsourcing introduces an essential layer of checks and balances, preventing the collusion that often facilitates fraud.
3. Constant Monitoring
We employ advanced tools to monitor your financial landscape vigilantly, identifying irregularities and addressing them promptly.
4. Safeguard Your Future
Outsourcing accounting not only saves you from losses but also shields your business’s reputation from irreparable damage.
Partner with Ardiah Managed Services
Internal fraud is not a challenge to be taken lightly. Connect with Ardiah Managed Services to fortify your business against the potential devastation of internal fraud. Our team is not just dedicated to numbers – we’re dedicated to safeguarding your business’s future.
Act now and shield your business from potential threats that could otherwise unravel your hard-earned success.
Christopher Austin President, Ardiah Managed Services
We trust this blog post has underscored the paramount importance of outsourcing accounting as a means to safeguard your business against internal fraud. At Ardiah Managed Services, we are more than equipped to be your partners in risk mitigation and financial integrity. Contact us today to explore how we can help you protect your business’s reputation, prosperity, and longevity.