My Photo

Phone: (615) 476-5329

Email The Virtual CFO

Technorati Profile

« Small Business Accounting Personnel | Main | Kudos to CloudBerry Labs and Their Amazon S3 Backup Software »

January 14, 2010

Comments

Michele Laidlaw

what about the dangers of lack of segregation of duties by giving too much authority to a clerk or admin assistant?

Scot Justice

Michele,

Thanks for your comment and for reading my blog!
You bring up a good point about segregation of duties.

This is definitely something small business owners should be concerned with. I don't have the exact statistics in hand, but in the past the Association of Certified Fraud Examiners has reported that a high percentage of fraud, both in number and in dollar cost, is perpetrated at small companies.

The cause of a lot of this is having a small staff (or one staff who handles this) and lack of owner’s oversight or segregation of duties.

Thanks again for your comment; I’ll probably write a blog series on fraud in small business in the future to address your question.

Scot

The comments to this entry are closed.