Online Exclusive: Accounting Basics for Small Contractors — Employee Fraud

A typical business loses 5% of its revenue each year due to fraud. Small businesses (less than 100 employees) incurred a median loss of $154,000. Any employee in any business large or small might resort to stealing if their situation becomes dire enough and there aren’t proper controls in place.  

In some of the previous installments of this series, we’ve discussed the importance of proper job costing, the industry’s dismal 3.5% profit percentage before taxes, the difference between profits and the cash in your bank account, and why cash flow is so important to the company. Let’s assume that you have educated yourself on those topics and your business is performing at or above that profit percentage.