Bohemia, NY (PRWEB) October 02, 2013
Lawrence Teicher, founder of CFO Consulting Services, comments on an article published by Fox Business on September 13th, which details how a lack of fraud protection is costing small businesses billions of dollars.
According to the Fox Business article titled “Study: Majority of SMBs Skimp on Fraud Protection,” a new survey from Bank of the West found that small businesses lose an estimated $600 billion per year due to fraud. While most small business owners implement fraud protection services, the article says they are not the most effective methods. For instance, the survey says “only 40 percent of small businesses conduct employee background checks, and just 18 percent have two-person controls in place.”
The article says not all fraud occurs outside of the office. About 30 percent of employees steal from their employers. On average, each employee steals about $4,500, the article says.
Lawrence Teicher, founder of CFO Consulting Services, says it’s up to the business owners to introduce stricter safety precautions to limit vulnerability to fraud. “CFOs and CEOs have a responsibility to really look at who they are hiring,” he says. “Internal fraud can be extremely detrimental to a small business. With your company and your money on the line, you should perform background checks, verify references and contact prior employers. Credit checks may be appropriate if the new hire is for a key financial position. While it may seem impractical for some small businesses, the proper segregation of duties among personnel is critical.”
Teicher also says hiring a part time CFO can help keep track of money and improve internal controls. “A part-time CFO can assist in evaluating your existing internal controls and recommend improvements. Dishonesty and fraud are unfortunate facts of life. No business is immune. The only safeguard is an effective system of internal control. Don’t let fraud be your company’s downfall.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.