For most small business owners, it is fine to be reorganized and well updated with present developments in the business area. Employing accounting software sets aside hours of time evaluated to dealing the books yourself and is generally more competent than employing a spreadsheet. It is because accounting software decreases or removes superfluous data entry, such as feeding the client’s address on the citation, then the work array and invoice.

If you are the only owner with no staff, low or no record and a handful of clients, you might not even require accounting software, or there are complimentary or low-cost accounting software accessible. Small business holders, who hold inventory, have more clients or staff will accumulate time and have more precise documentations if accounting software is employed.

Most accounting software is much simpler to employ than it previously was, and some small business accounting software was made for simplicity of use by an individual with no accounting knowledge at all.

One of the rising problems presently is cloud computing or else considered web-based or cloud accounting. It is one of the innovatory things that have flounced the world by blizzard as it has removed the load of employing conventional accounting arrangements that was annoying and uninteresting.

This is due to the following advantages that various entrepreneurs benefit from.

  1. It Gives True Access to Your Monetary and Accounting Details

The simplicity of going through accounting detail of your business is what creates cloud computing a must-have the solution for your trade. All you are required to go through your company’s updated monetary information is just internet link.

When you have the link, you will be capable of seeing the financial arrangement of your business from everywhere in the world at any time. As the administrator, thus, cloud computing permits you to move around from one place to another, but still be knowledgeable regarding how your business is doing as opposed to the previous where this detail was only available at the workplace.

  1. Decreases Overhead Charges

Accounting for the greatest time has always appended additional expenditures to any business. This is due to the business holder had to appoint a service accountant. Though, by cloud computing, what you are required to do is disburse the subscription charges and you are all set to go. This will put aside a substantial quantity of cash in the long-term. Another tip, courtesy of funders corner, concerning small business accounting is the fact that obtaining funding sometimes require these systems to be set up in advance, so that potential investors or your bank can get an accurate idea of your finances.

Keep in mind to find out support charges into your accounting software financial plan. Some small business accounting software offers fee dependent support by email or calls from the instant you initiate employing the software. Though, it is widespread for the price of small business accounting software to give support at no price for a fixed time-period so you can put questions when you initially start employing the software without acquiring extra costs. After that period, you reimburse for support quarterly, yearly or on the basis of per-use.

The accounting software may have a complimentary online user discussion where you can put questions too. It is usually a good alternative to fee-dependent support when your query is about how to employ an attribute.

  1. Simple and Safe Sharing

The problem of emailing accounting details belongs to the earlier period. Currently, almost each small business holder is employing cloud accounting to distribute the detail regarding financial arrangement of the business to diverse business stakeholders. In addition, you do not require back up of all the files via USB stick.

  1. Data Support and Safety

The cloud computing source you select makes sure that the safety for your information can not at all be negotiated. In a condition of system breakdown, the accounting detail for your business is always stored and you should not at all worry regarding data loss.

  1. Affordable

Performing small business accounting online has been established to be affordable in comparison to different accounting alternatives present. Initially, you do not require paying upfront charges the method it is accomplished when you purchase desktop accounting software. After that, it has real-time changes and you do not have to change anything the method it was being completed before changes are incorporated into the cost.

  1. Increases Business Effectiveness

When all the above advantages are taken into consideration, you can finally concur that the effectiveness of the business will be increased. When the overhead charges are decreased, undeniably the business will have improved savings provided that the income produced is kept stable. On the other side, you will expend less time gathering and verify the accounting manuscripts.

It’s significant to make a note that some accounting software is developed particularly for organizations like manufacturing, construction, and wholesale dispensers. If your small business is in the niche with particular accounting needs, there might be accounting software with attributes to accomplish those needs.

One of the biggest challenges you could face when running a business is fraud. Business fraud can lead to serious loss and failure within the business. A big fraudulent activity can deplete your small business profits and push you out of business. As a small enterprise owner, you should prevent fraud from happening. The risk of closing down is too high when you try to contain a big scam. Thus, you should learn everything that has to do with fraud and stay safe.

Understanding Business Fraud

To effectively deal with a business scam, you should understand how it happens. Find out the conditions and factors that provoke fraudulent activities and how to foresee them. More specifically, you should know all about the fraud triangle. Examples of situations that trigger fraud include:

  • Disgruntled employees who feel financially strained
  • Loopholes through which a malicious employee can commit fraud without being found.

Common Fraud in Business

Sending False Invoices

Employees who defraud businesses use false invoicing. It entails sending a fake invoice for items that were never procured. If the fake invoice is paid, the fraudster makes a lot of free money without the knowledge of their employer.

In most circumstances, fraudsters divert the stolen cash to their personal checking accounts.  If your small business scrutinizes each invoice well before paying, it cannot be ripped off that easily. The best solution for this situation is for your business to invest in inventory software. This type of software will track the companies purchases, sales, and more, making it easier to stay on top of things.

Payroll System

A payroll fraud is as common as invoicing fraud. A payroll fraud occurs when an employee increases the number of hours they have worked.

Companies can prevent this by having employees log their time by using an app. In some cases, false sales or orders can be reported so that one can get an unnecessary gain.

If you want to prevent this type of fraud in your company, come up with a robust anti-fraud system. You can do this by reviewing all time sheets on a regular basis to make sure than no employee has overstated the hours they have worked.  This system can as well capture false records and set a platform for investigation.

Check Tampering/Check Fraud

This one is the easiest method of stealing from a company. Countless companies have been defrauded via a check that is written to fake recipients. A business owner should consider using electronic billing software, this will ensure that all finances are secure.

Fraudsters who use this method work only in the background, trying not to be discovered until they get the money. Sometimes the check is genuine, but tampered with.

Theft of Money

Commonly called skimming, theft of cash is a rather widespread behavior. It affects businesses that use a less formal receipting process. Theft can also occur where the receiver of money manipulates the debtor’s ledger account and applies different receipts to that particular transaction. This method of stealing or misappropriating funds is called lapping.

Workers Compensation Fraud

This fraud happens if an employee manages to formulate a lie and exaggerate their injury to make a personal gain. Usually, employees who use this trick also lie about their exact location at the time of suffering an accident.

Mostly, they claim to have gotten injured during office hours while, in fact, they were out and about doing their personal business. To avoid this type of fraud in your company, buy the necessary safety equipment to be used in all business processes, or you and your employee may end up in court. Additionally, track your employees’ working hours to avoid a situation where they would claim undue insurance claims when they got injured outside your premises.

Internet Fraud

This can happen to any business that has weak consumer networks. Vulnerable internet network should never be used–as it attracts internet criminals like hackers and fraudsters. These are known to work tirelessly to exploit vulnerabilities in business networks.

Hence, any business using unsecured networks for its business transactions and workflows that entail private data is at risk of suffering fraud. It is imperative to use a router to keep your system files from ruthless hackers. It goes without saying that using software to safeguard digital data files is important.

EFT Frauds

This occurs when a person decides to use EFT (electronic funds transfer) to transfer money to their own bank account. This affects businesses of all sizes, especially, because they are using online banking technology.

How to Prevent Fraud

A common thing about business fraud is that it is committed by an internal entity. This is someone who understands how your payroll, invoicing, accounting, and banking systems work. To mitigate fraud, therefore, you should come up with a technologically robust system that can effectively track every business workflow.  

Obtaining the right technology is not all. You must understand how this technology works for you and the controls you should insert in your processes every time you implement new technology. Additionally, you should configure authorizations and segregations within the software, giving access and permission only to relevant people. Protecting your business from fraud is very time consuming and it can be a lot to handle, but it is absolutely necessary for the success of your business.