🚨 Bookkeeper Fraud Can Be Quiet… Until It Isn’t.

 

As a forensic accountant, I’ve seen far too many small business owners blindsided by financial losses that were entirely preventable.

If one person controls everything, they can hide anything.

Here are 5 segregation of duties best practices that drastically reduce the risk of bookkeeper fraud:

🔒 1. No Cash + Books Combo
Never let the same person handle deposits and record them in the books. Split the duties—always.

🧾 2. Dual Approval on Payments
Require two sets of eyes on all checks, wires, and payroll—especially for anything over $500.

🏦 3. Limit Bank Access
Bookkeepers should have view-only access—not check signing or wire privileges.

🔁 4. Rotate Duties or Enforce Vacations
Fraud needs continuous control. A mandatory 5-day vacation can break that chain.

📊 5. Owner Must Review Monthly
You don’t have to do the books, but you MUST review the bank reconciliations and financials monthly. No exceptions.

👉 If your only safeguard is “I trust them,” you’re not protected.

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