Perhaps it was just a missed accounting entry or maybe it was purposely omitted from the books. The difference between the two is the difference between a simple error and fraud. Fraud and accounting errors are especially important to small businesses since cash is usually a top concern.
Unfortunately, both accounting errors and fraud are common problems for small businesses, including equine businesses. More than 30 percent of all fraud occurs in small companies, according to research by the Association of Certified Fraud Examiners (ACFE).
A common reason that fraud and errors occur frequently is that small businesses often lack internal controls and often have a single person handling the accounting. When one person handles the accounting, manages the office, and ships product, problems can happen simply because they have no one to double check their work. Sound familiar? It’s also more difficult to discover errors and fraud since small businesses, including equine businesses, rarely have regular financial audits.
Outsourcing bookkeeping or accounting to a third party not only relieves a burden on your equine business, but also helps prevent errors and loss. The more people looking at the numbers, the easier it is to catch small problems before they become large issues which could potentially ruin your business.
If your equine business needs to prevent fraud and reduce accounting errors, EQ Bookkeeping can help. We provide a full range of bookkeeping services designed especially for horse owners and equine-related businesses, including:
- Vendor Payment Tracking
- Cash Flow Management
- Financial Statement Preparation
- Payroll Processing
- And more
For more information about our unique service for the equine industry, visit the EQ Bookkeeping website, or call 877-399-8920.
