An unfortunate byproduct of these challenging economic times is the increase in reports of fraud. Over at Small Business Trends, Denise O’Berry shares data from a recent Association of Certified Fraud Examiner’s survey, which found more than half of respondents’ reported an increase in fraud over the last 12 months.
With that in mind, it has become more important than ever to protect your cash flow. O’Berry offers the following tips:
- Hire Right: Even a candidate with impeccable references and close connections is someone you should vet to make sure that they are the right fit for your company. O’Berry says that no matter what, you need to conduct a background check and interview prospects to be sure their values are in line with your business.
- Spread Financial Responsibilities: Never assign financial tasks, such as the recording and authorizing of transactions, to just one person.
- Communicate: Make sure your business encourages communication, making it easy for staff to raise issues that come up. If employees are afraid to communicate because of repercussions, they may be unwilling to report damaging activity that could hurt your business. Offer a safe -- and anonymous -- reporting structure when it comes to these issues.
- Be a Good Role Model: O’Berry says if you bend the rules in your business dealings, you are setting a bad example for staff that will have far more influence than any policies or handbooks.
Take The Tip:
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