Financial fraud is one of the top reasons why a business fails. It is important that a business owner or owners work hard to protect themselves from fraud from clients and their employees. In their efforts to help you prevent financial fraud from occurring in your business, Mark Dicus & Company would like to continue the many ways to prevent fraud in your business.
Audit Your Business’ Books
In preventing fraud, a business owner should audit their books frequently. More particularly, in areas where there is cash, refunds, product returns, inventory, and the account’s primary functions. In addition to doing your own audits, often you should also do them at random. If you do the audits on a routine schedule you’ll provide thieves the opportunity to hide their activities and make it harder for you to identify theft and/or fraud occurring in your business.
Fraud Awareness & Prevention Policies
Employees that work in fraud prone settings should also have fraud prevention training. Employees are not the only source of fraud. Fraud can also come from clients and customers. For employees that do money transfers such as cashiers or onsite service technicians, train them on detecting suspicious behavior and check large bills etc. Additionally, set up an anonymous reporting system in the event in-house fraud may be occurring. Set up a no tolerance code for theft or fraud along with the reporting system to help keep employees in check.
Protect Credit Card Information
One of the most common types of financial fraud is credit card fraud. All businesses of all sizes need to work to protect their credit card information. A business should never mix their personal accounts with their business. This is a security strategy that is part of your protection from unauthorized credit card transactions. By keeping accounts separated, you can better monitor your credit cards from unknown uses. Credit card fraud can occur in-house or from outer sources. Make it as easy as possible to protect your credit cards for your business.
Know Business Partners
It is equally as important to know your business partners as it is to know your own employees. Many believe it is in bad taste to do background checks on potential partners. However, even if you agree with this, you will want some basic information about your partners. Start with the basics and make sure you know their physical address and that they are the person they say they are. Next, ask for contact information and if they are on social media. Fake partners will not have real phone numbers, addresses, or have a social media presence. Lastly, check up on your potential partner(s) at the Better Business Bureau. Again, they should have a presence at the BBB and you will better know what kind of partner you are excepting into your business.
Accounting, Bookkeeping & More in Menominee Falls, Waukesha, West Allis, Racine & Greater Milwaukee, Wisconsin
It cannot be stressed enough to seek professional help. Professional accounting and bookkeeping services have a number of systems in place to better monitor for theft or fraud. For small or big businesses that need a professional accounting and bookkeeping service that can help their business prevent financial fraud and better succeed, contact Mark Dicus & Company today.