When the business grows and the money doesn't: financial and accounting errors that affect the economy of SMEs
Constantly reviewing finances can help avoid headaches. Photo: Courtesy
TL;DR
- Internal normalized practices, not external attacks, are the most common cause of business fraud.
- Weak controls and the concentration of key functions in few hands, especially in growing SMEs, create risks.
- Small, repeated errors go unnoticed, silently affecting liquidity and financial data integrity.
- Problems often become evident at year-end or when key personnel are absent, revealing unrecorded issues.
- Strengthening basic controls, separating functions, and regular financial reviews are key to preventing internal fraud and ensuring business viability.