In the latest financial year, businesses have lost nearly £90 million from fraud carried out by their own employees.
Recent data shows that business losses from fraud by employees rose from £40 million in 2016/17 to £88 million in 2017/18.
The surge in losses follows a rise in reporting, with businesses submitting over 1,418 reports to the police this year, a 76 per cent increase on the previous year. The average loss per report also increased by £12,000 over the past year.
Effective management accounts and company audits
When putting processes in place for effective business administration, sound management accounts will enable better control of your financial situation and awareness of the business in real time. This can be effective not only in detecting and countering fraud, but also in enhancing planning for the peaks and troughs. In turn, whilst many companies do not need an audit due to rising thresholds, an audit can give comfort to business owners and act as a fraud deterrent.
At Beavis Morgan, we work with SMEs to put processes in place which make it easier to run your business, reduce risk and maintain effective management of your company’s working capital.
Further reading: Top 10 tax fraud cases in 2017