While most small business owners think that business theft occurs only in big firms, this is a misconception. It is crucial for all businesses, big or small, to verify the credentials of their employees.
In its 2006 report the Association of Certified Fraud Examiners revealed that businesses that had less than 100 employees incurred an average of $190,000 in fraud losses.
Every business is vulnerable to fraud and business owners cannot take the risk of not setting up safeguards and checks to dissuade tampering of financial documents and stealing money.
Trust has to exist in any relationship, especially a professional one, but that does not mean that small businesses leave scope for employees to take advantage of the firm.
Some of the safeguards the Association of Certified Fraud Examiners recommends include doing a background check and regularly reviewing the company’s financial data.
The report revealed that 29% of frauds were related to tampering of company checks while in 10% cases credit card abuse who discovered. Small business owners need to notice and be aware of the checks they are signing and the financial powers they are giving to their employees.Creating a fraud hotline is a great way to keep a track of any suspicious activities in the company that may lead to fraud.
Tags: Business Mentoring, Business Start Up, Business Success, CPAs, Freelancer, Home Business, IT, Lifestyle Business, Micro Business, MumPreneurs, Office 2.0, Office/IT, On-Demand Small Business Infrastructure, Outsourcing, Personal Business, SaaS – Software as a Service, Self-employed, SMB – Small Medium Business, SME – Small Medium Enterprise, SocialPreneurs, SOHO – Small Office Home Office, Virtual Assistant, Virtual Office, VSB – Very Small Business, Web 2.0, WebOffice, WinWeb, WinWeb AccountsOffice, WinWeb CashBook, WinWeb Live!, WinWeb OnlineOffice, WinWeb Virtual Assistant