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Edmonton business consultant says that small business fraud risks are going to be able to be very dangerous in terms of wanting to think about it. As well, you’re going to have to pay closer attention because despite the fact that you are busy it is definitely needed.
Make sure that you talk about a competitive market, and mediate a lot of get the bad business decisions that you may or may not be making as you are dealing with a lot of the competitive market. But we do not want to run of cash because of a fraud issue. That is the thing that you definitely don’t want to get yourself into and get yourself involved in.
Edmonton business consultant states the fact that a lot of business owners have one person in charge of the accounting and they are also involved with a lot of the filing and bookkeeping. What tends to happen is that one person has their own particular system, very different than what anybody else would potentially do. What likely happens, is they don’t take the time to train anybody else to understand their particular filing system. That causes a problem if that particular bookkeeper or pseudo-accountant says that they better not go on holidays or take a day off.
You’re going to be looking at the risks of the entity. In the basic risks are and it’s easier for him to definitely get away with. It is a lot of business owners that think that they have another potential choice when they can talk about outsourcing.
As well, what tends to happen is the fact that a lot of the outsourcing can have a lot of multiple situations and people involved when they talk about the chapter than the cost of one particular staff member. If you do it in-house you have the risk of that one person running the accounting.
There is an entrepreneurial spirit and myth that goes along with this particular topic. The myth is that the banks don’t check the bank signatures that you signed off on. They will tell you that they check them but they legitimately don’t. They may check them so sporadically that is not even worth it either way. They should be under lock and key in terms of their importance for your small business and making sure that nothing happens to your potential money and revenue. It is the single biggest risk of fraud in a lot of small businesses.
Edmonton business consultant also states the fact that instead of a lot of the problems with using the checks, make sure that you consider at least involving and instituting an EFT processor from within your business. No one can just have a check. Sign it and definitely cash it. If you have any 18 funds provider you can definitely transfer those funds from a corporate account to an EFT account and they will be secure knowing that they’re not going to be going anywhere.
You’re no longer going to need a lot of petty physical cash, says Edmonton business consultant. Everybody knows now that everybody in the at least developed world accepts a lot of debit and credit cards. Credit cards as well can be very cumbersome. You don’t want necessarily anybody in your team to have one at all. That could be a security risk for you and your business.
What you can do, says Edmonton business consultant, is you can give one particular person one of the credit cards and they are responsible for it. If anything happens to it the responsibility is on that particular person.
As well, what you can do is you can pass off the credit card week over week, so that just one of two people is responsible for that credit card and the off week you will be responsible for the debit card for in-house purchases, office supplies, etc. You can definitely put a limit on that credit card of $500 and that will be the new petty cash tool from within your office.
It is easier to account for, and has dramatically less risk than a lot of cash. Paying for expenses can certainly be a fraud risk. However, they cannot only be a fraud risk but they can also be an audit risk as well.
Potentially, says Edmonton business consultant, what happens is you’re going to be inflating the hours or the wage and that can be even harder to catch in terms of fraudulent activity. Make sure that payroll remittances are looked over potentially with a fine-tooth comb, as that can be a major fraud risk to you and your business as well. It certainly has a high degree of responsibility for you the small business owner, and your managers.
Suggest instituting read-only access and agent accesses from within your business. There to be able to see all the activity from within your debit and credit cards with this particular system. There to be help in bookkeeping, reconciling accounts, however, they’re not going to have the responsibility of dispersing cash, making withdrawals or posts, etc.
As well, it should be said, although this potentially should be common practice, that you do not share credit card credentials. Just like you do not do that personally, it is the same thing from within your business. You should not even share credit card credentials within the coworkers of your small business. For the person in your business that legitimately needs a credit card you can get them a credit card but make them responsible for it. If it goes missing they will be accountable for it. As well, make sure that nobody else has access to that credit card and make sure the information from that credit card is not shared with anybody else from within the office. That soul credit card holder is the sole person who is responsible for it.
