Is Your Business Safe from Fraud?

Fraud. It’s the silent predator lurking in many businesses, waiting to strike when we least expect it. As a business owner, you pour your heart and soul into building something meaningful, only to hear devastating stories of financial betrayal. In this week’s Spartan Leadership Podcast, I had the honor of speaking with Christine Brunner, a forensic accountant with over 23 years of experience in uncovering fraud and financial mismanagement.

Christine’s expertise isn’t just about numbers; it’s about stories—the ones hidden in financial statements, receipts, and emails. If you’re running a business, her insights are nothing short of essential. Let me share some of the key takeaways from our conversation and why this episode might be the wake-up call your business needs.

Watch the Episode

Red Flags in Financial Statements

Christine shared that fraud often starts small. An extra expense here, a forged report there. But these small missteps, if unchecked, snowball into larger disasters. Here are some of the key red flags she highlighted:

1. Unusual Patterns in Transactions: If you notice irregularities in deposits, withdrawals, or expense reports, don’t brush them off as mistakes.
2. Employees Who Never Take Time Off: This one surprised me. People hiding fraud often avoid vacations so no one uncovers their tracks while they’re away.
3. Deleted or Altered Entries: Christine stressed the importance of regularly running audit reports in systems like QuickBooks to track unusual activity.

PPP Fraud: A Nationwide Epidemic

Did you know that billions of dollars were misused during the Paycheck Protection Program (PPP) rollout? Christine explained how a lack of clarity in the early stages led to widespread fraud. Even businesses that applied with good intentions are now under scrutiny for discrepancies between their filings and actual financials.

Her advice? Document everything. The IRS and other agencies are conducting retroactive audits, and if your paperwork doesn’t match, you could face penalties—or worse, criminal charges.

The Power of Separation of Duties

For many small business owners, hiring one trusted employee to handle all financial responsibilities feels natural. But Christine warned that this creates an environment ripe for fraud. Her advice? Separate financial duties whenever possible.

For example:

• Have one person deposit money and another reconcile accounts.
• Ensure only you, as the business owner, have admin-level access to your accounting software.
• Regularly review audit reports, even if you’re not a financial expert.

These small changes could make a world of difference in protecting your assets.

Why QuickBooks Isn’t Just for Accounting

Most small businesses rely on QuickBooks for day-to-day financial operations, but few use its full capabilities. Christine emphasized that the audit reports feature is a goldmine for spotting fraud. These reports can show you who made changes, what entries were altered, and even when someone logged in.

Christine’s advice:

• Run an audit report monthly.
• Look for patterns of activity outside regular work hours.
• Watch for an increase in deleted or edited entries.

Even if you’re not a financial expert, reviewing these reports shows your team that you’re paying attention—an effective deterrent in itself.

The Human Element: Fraud and Motive

One of the most striking parts of our conversation was Christine’s belief that people are inherently good. So, why do they commit fraud? Often, it’s not malice but desperation. Divorce, health crises, addiction, or financial struggles are common motivators.

Understanding this doesn’t excuse the behavior, but it helps business owners realize that fraud can come from the most unexpected sources—often from those we trust the most. Christine’s advice? Balance trust with accountability. Being kind doesn’t mean being na?ve.

Lessons for Business Owners

As business owners and leaders, we wear many hats. Financial oversight isn’t always our strength, and that’s okay. But Christine reminded me that we can’t afford to be hands-off when it comes to financial accountability.

Here are the steps she recommends to stay vigilant:

1. Conduct Monthly Reviews: Sit down and review your profit-and-loss statements. You don’t need to be a financial expert—just familiar enough to notice when something doesn’t look right.
2. Leverage Technology: Use tools like QuickBooks to their full potential.
3. Set the Tone from the Top: Your team should know that you’re involved and won’t tolerate unethical behavior.

A Career in Forensic Accounting

Beyond the advice for business owners, Christine’s story offers inspiration for anyone considering a career in accounting. She explained how forensic accounting isn’t just about crunching numbers—it’s about solving puzzles and uncovering the truth. If you’re a young professional or student, this could be a career worth exploring.

Fraud prevention starts with awareness. As Christine said, no one sets out to destroy a business; most fraud stems from opportunity. By implementing the right systems and staying involved, you can protect your business, your employees, and your peace of mind.

This podcast episode was eye-opening for me, and I hope it will be for you, too. If you’re ready to dive deeper into the world of forensic accounting, watch the full episode!

Let’s make financial accountability the standard in every organization.

Have you implemented these safeguards in your business?

What steps are you taking to ensure financial accountability?

Share your thoughts below or reach out if you’d like to learn more about the tools and strategies Christine mentioned.

Let’s lead like Spartans—one step ahead of the challenge.