If you don't have proper internal controls you could face these four types of payroll fraud!
Did you know, your payroll is one of the easiest financial systems to abuse? If you don't manage payroll properly, there's nothing stopping your employees from making changes.
These changes could result in more money in their back pockets and huge financial losses in yours.
This is something you can't afford in your business.
But there's good news. We've found the top four most common kinds of payroll fraud you need to look out for. Read on to find out what they are so you can protect your company.
Three accounting record risk areas to watch out for
Look out for the top four kinds of payroll fraud
1. Timesheet fraud
This is when employees say they've worked more hours than they actually have. You'll end up paying for hours your employee didn't actually work. This can apply to both contractors or any employee who earns over time.
2. Ghost employees
If an employee adds a fake employee to your payroll, it's a ghost employee. If you don't do payroll checks you could start paying salaries for employees that don't exist, into an existing employee's bank account.
3. False expense claims
If members of your staff try and claim unauthorised or false expenses, it could result in huge financial loss for your company.
4. Changes to bank details
If your employees can change details on your payroll programme, it'll be possible for an employee to change another employee's bank details. If he changes the details to his bank account, one employee will get double pay and another employee won't get any.
But can you prevent this fraud?
Are you spending TOO MUCH on accounting costs?
REVEALED: The secret to reducing your audit fees…
The truth is you could pay less accounting fees while at the same time prevent fraud, save on tax and Vat costs and keep up to date on changing legislation.
Prevent payroll fraud with internal controls
With these controls, you'll be able to prevent all of the four major types of payroll fraud.