What tasks should small business owners typically segregate or perform themselves to prevent fraud?

When it comes to preventing fraud in small businesses, it is crucial to segregate certain financial tasks to minimize risks. The most effective approach involves separating responsibilities among different individuals or ensuring careful oversight if a single person handles multiple tasks. In this case, managing writing checks, bank deposits, and reconciling statements is vital.

Writing checks and managing bank deposits directly touch on the flow of cash, providing opportunities for misappropriation if not monitored separately. If a single person has the authority to write checks and also manages the deposits, they could potentially issue payments to themselves while covering their tracks by manipulating bank records. Reconciling statements is a critical control measure that checks the validity of transactions. If the same person who writes checks or makes deposits is in control of the reconciliation process, it can lead to undetected fraud.

By assigning these functions to different individuals or systematically supervising them, small business owners can create a strong internal control framework, thus significantly mitigating risks of fraud. This segregation of duties is a fundamental principle in fraud prevention that helps ensure checks and balances within the organization. Other tasks listed in the other options, such as marketing, sales analysis, or customer service, do not directly involve the management of financial transactions and therefore do not present the same level