Of Interest In This Newsletter…

• Small businesses are most vulnerable to fraud.

• An Invaluable Software Tip.

• A Message From One of Our Strategic Partners.

FRAUD AND THEFT IN SMALL AND MID-SIZED BUSINESSES.

According to the Association for Certified Fraud Examiners small businesses are the most vulnerable to fraud and theft, primarily because many do not have even the basic procedures in place to protect against it. Based on a survey conducted between April 2001 and February 2002, median losses at large companies (10,000 or more employees) averaged $97,000 compared to $127,000 for small companies (100 or fewer employees). Given the potential risks business owners should make fraud prevention a priority in their businesses. Here are some suggestions:

1. Accept the idea that fraud is commonplace, and can happen at any business.
2. Hire the right employees, conduct the proper reference and background checks, and set an appropriate ethical example for employees to follow.
3. Develop a code of conduct that specifically prohibits employees from committing fraud (or other illegal acts); and, adopt a "trust, but verify" code.
4. Divide responsibilities - no exceptions. For example, one person opens the mail and prepares bank deposits and another is responsible for actually taking cash and checks to the bank. As a business owner, you should open and review bank statements personally (even if you must have the statements sent to your home).
5. Make sure bank statements are reconciled monthly, and periodically reviewed by an expert advisor.
6. Cross-train and enforce mandatory vacations. Employees will be less likely to commit fraud knowing that someone else could be examining their work while they are on vacation.

YOUR ACCOUNTING SOFTWARE.

Did you realize that many small business accounting software packages, such as QuickBooks can handle depreciation of fixed assets? To use this capability you need to set up a fixed-asset depreciation table (in QuickBooks, under Company select Planning & Budgeting, then Decision Tools, then Depreciate Your Assets).

A MESSAGE FROM ONE OF OUR STRATEGIC
PARTNERS, NL TECH.

Naden/Lean started N/L Technology with the simple idea of providing our clients with a trusted partner that can guide them through their computer decision-making process.

N/L Technology has experienced strong growth due to our dedication to excellence, as well as our customary, straightforward nature. We offer a variety of services including (but not limited to):

• Microsoft Windows Operating Systems & Networks
• Disaster avoidance/recovery; Hardware selection and sales;
• E-mail, Internet and anti-virus solutions; Remote access solutions;
• Strategic technology planning/budgeting; Software application consulting;
• Security analysis; Blackberry implementation;
• Variety of service agreements to meet your needs

As an existing client to Streamline Accounting, we are offering a free network evaluation as well as a free month of our premium network support plan*. We look forward to partnering in your success.

Sincerely,
Scott Adelman
Senior Account Manager

sadelman@nlgroup.com

www.nl-tech.com