Can Internal Control Overcome Payroll Fraud?

Currently, there is a big problem with payroll fraud and that has left many business owners unsure as to whether or not they should use payroll services Australia. You cannot blame business owners for being sceptical and unsure over who to turn to with this problem because it’s a very common issue amongst millions. When there is fraud you have to make sure you’re on top of it at all times otherwise you could lose thousands of dollars per year. However, can internal control overcome payroll fraud? Read on to find out more.

Internal Control Only Goes so Far

It’s good to be vigilant but that can only go so far. When it comes to payroll fraud, internal control can go so far in terms of deterring it and preventing it. For example, if you are personally taking control of the payroll then it will probably be far tougher for this to occur since you are usually the only one that has control over payroll. However, if you and others are controlling payroll, there are still risks involved. Of course, that doesn’t mean to say if you hire a payroll service, your payroll is at greater risk, it just means there is a risk of it occurring.

Can Internal Control Overcome Payroll Fraud?

Should You Avoid Hiring Anyone for Payroll?

If you do not know what you’re doing in terms of taking care of payroll then it is not a wise move to attempt to deal with it all by yourself. However, that doesn’t mean to say you can’t still be vigilant over your payroll and be in control of them. It can be good to hire payroll services Australia as well as keep a close eye over things. What’s more, you could actually review the payroll documentation once every month or at random so that if there is any fraudulent activity it can be picked up immediately.

Get a Third-Party Company to Inspect Payroll Regularly

You don’t tell anyone about third-party inspections or checks, you just get a trusted payroll service to come in and review the payroll. Is that being sneaky or is that being smart? When it comes to your business, you have to be smart and even if you are being a little sneaky in employing a third-party company to review the payroll, it may make all the difference. Having good internal control can help overcome payroll fraud but things aren’t always that simple. Little things can get by you no matter how vigilant you are which is why when you are hiring someone, you get random checks made by a third-party company.

Preventing Fraud

Fraud is devastating and when it hits your business you can lose so much. It might be time to think about looking into ways in which you can help prevent this from occurring in your business. It doesn’t happen in every business but there are risks of it happening which is why you have to be careful and precise. It’s good to take the time to explore your options and see what is available for you today too. Fraud prevention is a necessity whether you have payroll services Australia or otherwise. For more information read here