- Are you a business owner looking to protect your business from financial and employee fraud?
- Do you know how you can use expert legal services at affordable prices to protect your business?
- Have you tried talking to experts in different fields and know about some points you should look out for?
According to business experts, small businesses are more likely to be exposed to frauds of different kinds than big businesses. We are talking about some of the most vulnerable threats like-
- Financial Frauds
- Employee Frauds
- Unnecessary Fines from Authorities
In this article, we are going to help small business owners understand how they can protect themselves from such frauds. We will also discuss why business owners should take this issue seriously.
Why protecting against Fraud is essential for the Survival of Small Businesses
One of the major differences between small and big businesses is necessarily the kind of financial buffer they have. There is also a stark difference between the legal arsenals at the disposal of the two businesses.
Big businesses have a battery of lawyers at their disposal to prevent them from the above-mentioned fraud attacks. However, small businesses that have access to limited resources should not feel bad. They can always get access to the best virginia criminal lawyer to help defend your personal and professional interests.
In small businesses, a single employee can function across teams. He can be in charge of procurement, work on the factory floor and work with distribution vendors. All this makes him or her gain access to important and sensitive information, which can be detrimental to the interest of a small business.
How to Protect against Fraud by doing 5 Simple Things: The List
- Learning about your Employees-
Everyone who works for the business should have a proper case file, which should be vetted as soon as they join the business. This includes background checks in their homes, their financial records and other disclosures on an affidavit. They should also be made to sign a Confidentiality Legal Document that prohibits them from doing unethically.
- Don’t involve too many People in Accounting-
According to business experts, it is best to keep your accounting team as small as possible. It should not exceed more than three people at any point of time. In addition to the owner, not anyone else should have access to the passcodes, cheques, log in ids and voucher clearances function. Centralizing your accountancy will prevent financial wrongdoings.
- Keep Control of the Bank Accounts-
Even though you have a full-fledged accounting team, it is best to keep a tab on all the bank accounts personally. Ideally, you should have a sit-down conversation with your bank every single month. You should also ask them to prohibit dealings and payments above a certain level without your personal consent. All these things go a long way in ensuring financial propriety.
- Have Training Sessions for the Employees-
In most small businesses, the employees themselves are the ears and eyes of the business. Honest employees are great assets and act as watchdogs on the floor and in the cubicles. It is essential that you train your honest employees to spot irregularities in business operations. As they are in the midst of the action, it will be far easier for them to spot frauds.
- Take Help from Legal Experts-
Even if you are a small business, it does not harm to keep a legal expert on your monthly payroll. This is essential as it helps you prepare for any unforeseen situations, which might arise. You should get legal help from someone who is an expert in dealing with such issues. This is a sound investment, which will help you when the need arises.
The Final Word
As criminal masterminds, start using sophisticated ways to create mischief, business owners need to vigilant and step up their awareness and security to counter all attempts. Can you list some more areas, which business owners need to look at to prevent fraud from happening? Drop your answers in the comments section.