Employee fraud can seriously affect any business; the construction industry is no exception. We have discussed this numerous times in our podcasts and blog posts. Unfortunately, we still get calls from construction business owners who unknowingly become victims of this financial nightmare. That is why it is important to revisit this topic and emphasize the need to be proactive and vigilant so it doesn't happen to you.
Identifying warning signs of potential employee fraud is crucial for maintaining your company's financial health and integrity. Unsurprisingly, the highest-risk employees for fraud have trusted roles in financial services: Accounts Payable, Accounts Receivable, accounting, and bookkeeping.
To commit fraud, or in this case, embezzlement, an employee must have both access and opportunity—that is, access to funds, banking records, and accounting data. The ideal situation is for someone entrusted with multiple roles who can cut and sign checks, process accounts payable, and handle bank reconciliations.
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Topics:
Bookkeeper Embezzlement,
Embezzlement,
Contractor Bookkeeper Embezzlement,
Construction Bookkeeper Embezzlement,
Employee Fraud,
Employee Theft,
financial fraud
Mistakes can be expensive in the construction business, and as an entrepreneur, although you'll know many of the regulations that apply to your business, there are so many that you can't possibly remember all of them. Depending on the type of contracting business you run, you could face laws regarding taxation, employment, product liability, premises liability, discrimination, health and safety, and various other regulations.
Keeping on top of all the laws that affect you and the changes to those laws while still being mindful of all the other aspects involved in running a business is almost impossible.
That's why you need legal help. A legal professional can identify the rules and regulations that apply to your business and advise you on operating within those laws. They can also help you draw up necessary contracts that could prevent legal action in the future, and they can prepare a case in the unfortunate event that you wind up facing or filing a lawsuit.
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Topics:
Bookkeeper Embezzlement,
Embezzlement,
Contractor Bookkeeper Embezzlement,
Construction Bookkeeper Embezzlement,
Employee Fraud,
financial fraud
As a small business owner, you always look to keep your company running efficiently. Expense reimbursement fraud is the last thing you want to face. Not only can it hurt your bottom line, but it can also damage your construction company's reputation. Here we discuss employee expense fraud, the reasons behind it, and, most importantly, how to prevent it from happening to your construction business.
What is expense fraud?
Expense fraud is submitting falsified or inflated expense claims to receive reimbursement from the employer or avoid paying out of pocket. It is illegal, unethical, and detrimental to your business.
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Topics:
Bookkeeper Embezzlement,
Embezzlement,
Contractor Bookkeeper Embezzlement,
Construction Bookkeeper Embezzlement,
Employee Fraud,
financial fraud
As a small business owner, you're likely already aware of the importance of keeping your finances in order. Financial management goes deeper than paying your bills on time and collecting invoices (although those are also important). It involves regularly checking your financial situation to ensure your accounts are in order, your records are up-to-date, and you're spending within your budget.
Among those activities, financial reconciliation is vital in keeping your finances and business on track. Force reconciliations can cause your net income to be over or understated, which means you pay too much in taxes now or too little now and the rest later with penalties and interest because the IRS can ask for a copy of your bookkeeping record.
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Topics:
QuickBooks For Contractors Financial Reports,
Contractor Tips,
financial fraud,
Financial Reconciliation
We're in a dynamic, multicultural country with many different races of people from diverse origins, just within the domestic market; it's vital that you know who might be interested in your goods or services and how they could perceive particular messages.
Whichever specialty your construction business is in, cultural differences can directly impact your profitability. If you try to understand your crew's and clients' cultures – their customs and differences – you'll have a better chance of keeping them and gaining more, respectively.
Suppliers, vendors, and service providers respect leaders who have a vision, mindful and considerate, and can power through every obstacle to achieve success. They will support you in ways you cannot even imagine because it is in their best interest.
Decide how you want to lead, how you want to be respected, and the work culture you want to create.
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Topics:
Contractor Tips,
cybersecurity,
Employee Fraud,
financial fraud
Unfortunately, fraudsters are out there. They want your money and identity, and they're getting more sophisticated. There's a wealth of opportunity for swindlers to take advantage of people because so much of what we do is now online. There are ways for you to protect yourself, both by taking action and being aware of what's going on.
While they might get less information from a small business, thieves will easily access it. If your construction company keeps any time-sensitive information on a computer network—personal information, credit card details, or other vital data—you need to ensure your cybersecurity is top-notch so you, your business, and your clients are fully protected.
As a small construction business owner, you may not have the significant security budget of a large company, but you can combat employee theft and protect yourself from financial losses if you can identify red flags and follow suitable preventive measures.
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Topics:
Contractor Tips,
cybersecurity,
Employee Fraud,
financial fraud
