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Business consultant invites you to their auditing 101 idea in terms of if there is only one person, in charge of certain parts and certain departments from within your business, that can definitely be a theft issue. Before you do an audit, on that entity. You are definitely going to be looking at the risks of that particular entity. And you’re going to figure out what the risks are and how they can be solved.
It is technically easier for them to get away with it when it is just one person, in terms of nefarious acts within your business. If you double up a lot of your departments, then each and every person will be responsible for the other. It does not necessarily have to seem like a watchdog, but it in fact is. A lot of business owners think that they are strapped in that they don’t have another choice, and outsourcing however can have a multiple people involved and it can be certainly cheaper than the cost of a staff member.
Business consultant wants you to understand the cost of one staff member is definitely prohibitive particularly if you are a new business owner. However, it is a small price to pay when you know that it can mitigate and stop a lot of theft happening within your particular business. If you do it in-house, you have the risk of that one person running the accountant, which again they are only accountable for themselves.
Likely, as a small business owner, you are definitely going to want to be protective of your life savings and you are brand-new small business. That is not necessarily a bad thing. In that you’re going to want to make sure that everybody falls in line with a lot of honest procedures and protocols.
However, it is a fine line when you have to not seem like quite the watchdog, and yet have to protect your interests.
Business consultant also suggests the fact that instead of using checks for your business, you retain an EFT processor. EFT stands for electronic fund transfer processor, and no one can just then take a check, sign it and cash it. If you deal with a lot of revenue. Just ask Toronto Dominion Bank, who had an issue with that with checks being cashed twice. They lost a lot of money over that, however the problem has since been rectified.
If you have an EFT funds provider you can transfer those particular funds from a corporation account to a legitimate and honest and specific EFT fund provider this can be done for all of your payroll and your payables.
As well, within EFT provider, you’re never going to be able to have to deal any longer with hundreds of casts disbursements per month. That can be very frustrating, and will not allow you to be able to see if there are any legitimate cash discrepancies happening with from within your business.
You’re going to have one particular cash disbursement every two weeks if you retain an EFT machine, says business consultant. You’ll now easily know that there is a problem with to cash disbursements instead of hundreds.
There is going to be a problem and it is going to put the controls in place so that the numbers and the money is dispersed at a certain and specific time.
You’re going as well reduce the number of transactions that are appearing on that individual statement. That way any fraudulent transfers are super easy to identify and you will be able to definitely understand who potentially the culprit is for your small business.
It often senses that a lot of the things that are going to be dealt with from within your business are consulting problems with you and your subordinates or your coworkers. They are potentially not going to be able to understand a certain task that you have sent forth to them, or they don’t understand particular procedure or policy.
That can also get them set them off, and get them angry, warns business consultant. So as they lash out.
Make sure that you do not necessarily share credit card credentials. It is exactly the same that when you have a personal credit card as well. Would you ever share your credit card number with anybody personally, the answer obviously is no. It is the same procedure with a personal and professional credit card as well.
Your boss that small business owner, trust you, and trust that you’re not going to do anything foolish with the credit card. He is potentially even going to say that the onus is on you in case the credit card goes missing, is stolen, etc. So he washes himself of all of the responsibility. And the all of the responsibility falls on you.
Although credit cards can be a little bit cumbersome, reminds business consultant, it is not near as cumbersome as cash now. Gone are the days where cash is just so popular and you can barely find any debit or credit machines anywhere. Now debit and credit machines are pre-much accepted the world over.
Just because you are paying a corporation does not necessarily mean that you have to let your guard down and think that that corporation is honest and open about all of their dealings. They could be a very illegitimate corporation and you don’t know anything about it. Make sure that you have done your due diligence, and you know who these payments are going to and what the specific names are. If you don’t recognize a name on the cash disbursements, that is going out through your EFT provider and not through your checks, that will allow you to continue to be safe, and you have not allowed everything to get lost in terms of more revenue on your behalf, and put your small business at risk.
It might be a good idea as well to set up a read-only access any agent access medium.
