The average embezzler is more than likely the person you trust the most and suspect the least. They are accountants, bookkeepers, bankers, managers, and sometimes your business partners. Because of the role they play in your business, many times they can easily conceal their crime.
Forensic accountants are professionals with auditing and investigative skills that are used to help interpret the story the numbers tell. Or in plain English, think CSI with accounting records. A company or organization would hire a forensic accounting when something doesn’t seem right.
So, now you may be wondering, how would know if something isn’t quite right?
Here are four key indicators that it’s time to C.A.L.L. a forensic accountant:
C – Cash flow issues – when you know your sales are increasing but your cash flow is still slow or low, this could be a sign that you may have hired a fraud.
A – Angry customers – if your customers are complaining that their account statements are always wrong. The statements might say they have a balance due when they do not. This typically happens when an employee is skimming money and not applying them to the customer accounts. If you are hearing this repeatedly, it might a reason to call a forensic accountant.
L – Levy notices – if you are receiving levy notices for unpaid taxes – you may have hired a fraud. Embezzlers will oftentimes steal the money they should have used to pay the taxes for themselves.
L – Late financial reports – if your bookkeeper/accountant is constantly making excuses for why the financials are not ready – you may have hired a fraud. If the fraudster is your bookkeeper, they maybe be delaying issuing reports because they are hiding something.
To learn more ways to protect your business from insider fraud, grab a copy of, Did You Hire a Fraud?