Preventing Fraud: Forensic Accounting Tips for Small Businesses

Fraud prevention starts with controls and visibility. Keep duties separated—those who approve payments shouldn’t also reconcile bank statements. Reconcile accounts monthly and automate bank feeds to catch anomalies quickly. Use role-based access in accounting systems so sensitive actions are logged and limited. Regularly review vendor lists and require dual approvals for large payments. Random internal audits or periodic reviews by an outsourced accountant help surface irregularities before they escalate. Maintain clear documentation for expenses and procurements, and educate staff about fraud risks and whistleblower channels. Finally, partner with a forensic accountant if you detect red flags—early investigation preserves evidence and reduces losses. Strong processes and a culture of transparency are the best defenses against fraud.