If you’ve been paying attention to the news, you might have seen that not long ago, executives of one of the largest nursing home networks in the nation, American Senior Communities, were charged with massive amounts of Medicare fraud. Not only is it an upsetting story, it is one that should give any business owner pause. If fraud were happening in your business, would you know?
Unfortunately, when we at Silverback provide expense analysis for our clients, we sometimes find that dishonesty or deception is present.
There are cases when someone who controls spending, such as a controller or business manager, is manipulating the books to cover up suspicious or illegal activity. However, because of our years of experience in the industry, we have learned the signs of fraud and know what to look for.
Here are a few of the red flags that we look for when analyzing a business. Have you noticed any of these things in your own company?
Push Back from Employees
How do your employees react to the news that an independent analysis of spending is about to be done? We’ve found that if employees in charge of finances are resistant to sharing information with us, that can be cause for concern. It can be the case that there’s something going on that those employees would rather keep hidden.
High Spending in Unusual Areas
If our research reveals that 45% of your budget is going to office supplies, we’re going to ask questions. Fraudulent activity can often be hidden in seemingly mundane spending areas and uncovering those things can expose illegal or dishonest activity.
Lack of Accounting
Is there money leaving your business that can’t be accounted for? That is a huge cause of concern. If your business’s record-keeping can’t show where every dollar is going, you’ll want to start asking some tough questions.
How Can a Strategic Cost-Cutting Plan Help?
As an independent third-party, Silverback can take an unbiased look at your expenses and help reveal fraud if it exists. Even if we don’t find fraud, we will still most likely find places where your business can save money. If we don’t find you any savings, you aren’t out anything – we only take a fee if we’re able to realize actual cost-reduction for your business.
A little investigation can often stop fraud before it gets out of control. It can also mean a better bottom line for your business. Contact Silverback today. All it takes is last month’s bills to be on your way to lower costs and more profits.