How to Prevent Fraud as a Business Owner – A complete Guide
Handling business has many risks and responsibilities. As a business owner, you have to make sure that things are running smoothly without any issues. The business can face many issues like problems in sales, financial troubles, and even frauds within the business. Small businesses are said to experience more frauds and suffer major losses as compared to the large businesses. This document focuses on how a business owner can prevent his business from a fraud.
1) Accounting and Bookkeeping: Many small businesses have only one person to handle all the accounting and bookkeeping. This might include all the client payments, supplier payments, paying invoices, employees salary, handling petty cash, and other expenses. Having one person to handle all the finances can make it easy for frauds to go unnoticed. It is better to have two persons to handle the finances and keeping cash handling and other finances separate from each other.
2) Maintain processes: Your business should have detailed processes for all functions carried out within the business. For example, there should be some authority to sign all the financial transactions like claims, refunds, over time, leaves etc. Also, there should be protocols to restrict other employees from accessing financial as well as the inventory information. If you are not experienced in this domain it is always recommended to get help from experts like law firms Glasgow.
3) Audit your business processes routinely: It is important to audit your high priority process like inventory management, finances, and bookkeeping in order to prevent any frauds and caught them at earlier stages before they do huge damage to your business. As a business person, it is important to keep a careful watch on each and every process and change happening in your business. No matter how small the fraud is, it is important to stop it as soon as possible.