Your Filing System Either Promotes or Prevents Fraud


She looked stunned as her accountant told her it was her fault that the woman had stolen the company’s money to pay for personal expenses. How could it be my fault, she asked? The accountant told her that she created room for the thief to operate by allowing a disorganized filing system in an environment where the culprit had access to her company’s check books. In short, she always left the “pantry” door open, gave the extra house keys to the “visitor,” never complained when the “house” was left disorganized and never checked to see what the visitor took from her home each time she came in. So why wouldn’t the visitor become a thief? She clearly showed she didn’t care! She displayed the sign – “we are open for robbery.” And the robber stole her money. End of story!

If you insist that employees file check stubs along with check copies and supporting documents in a logical (sequential) order, it becomes hard for anyone to steal your check leaflets because it is more glaring and obvious when the numbers are out of sequence. But if you leave receipts, invoices and check stubs scattered and disorganized, then it is harder for you to detect when something is missing, and easier for a thief to take advantage of you. So get on this today! File neatly and logically, and check your number sequence for missing check numbers often.





Published by Tope Ganiyah Fajingbesi

I am a CPA and an International Chartered Accountant with 15 years accounting and financial management experience from big 4 accounting, fortune 500 and nonprofit organizations within the United States of America and Africa. I am also a writer and love to help others live the best financial life possible.

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