Unfortunately, it’s the little guy that always loses out. Companies with less than 1,000 employees lose, on average, $79,000 more than larger companies per fraud case, say the Association of Certified Fraud Examiners. Considering the fact that smaller businesses are less likely to have large profit margins, unlike their bigger competitors, this is a sad story for little companies.
Fraudulent behaviour is enough to sink a small business, especially in the current double-dip recession. However, all hope is not lost: you can help your business prevent fraud by following these simple tips –
Other Instances To Watch Out For
Often, employees are allowed to handle goods without supervision. Some staff take advantage of this, especially for companies dealing in valuable commodities like laptops. Frauds are often committed internally, and more often than you might think, a long-term employee who you trust.
The Most Common Fraudulent Behaviour
Tampering poses a huge risk to small businesses. You can prevent this from happening so prevalently by spending money on an annual audit. An audit implements checks so that criminals can’t commit fraud very easily, and staff checks can ward off problematic employees. Contact an accountancy firm to manage your business affairs and catch fraudulent behaviour early; they can also offer fantastic business and financial advice to help your company flourish.
How Can You Prevent Fraud?
The minimum you should perform in background checks is criminality. Many small business can’t afford to fork out thousands of pounds to get the low-down on every single member of staff, but it is so important to know who you are employing.
One way to ensure that your business is not committing any type of fraud is by becoming an expert in tax law with an online mba in international business.
A credit check is also handy. Although many people have financial problems and that shouldn’t reflect on their ability to perform their job, you should know if your bookkeeper has gone bankrupt in the past. By looking at an employee’s file, you can ascertain if they are going to be a problem in the future: do they have drug crimes or sexual harassment on their record? Are they big suers?
Another thing you should check is if they have lied on their application form. If they lie at this crucial stage, they are likely to lie throughout their career. Tell your potential employees that you are going to do a background check, because if they have questionable offences on their record, they are going to run a mile. In regards to already hired staff, don’t give even your most loyal employee too much power, because this person can put you out of business.
Have faith in your company in general. Set-up a hotline for whistleblowing – you may be surprised at how quickly you can stop fraudsters in their tracks this way. The whistleblower may be too hesitant to contact their higher-ups and this offers them an anonymous way to reveal vital information, as well as protects them within the working environment from other staff members. This may not even necessarily be about fraud; it could also offer them an opportunity to admit to being a victim of violence or poor working conditions.
