Steve Sorensen Embezzlement – Top 3 Ways to Protect Your Business from Cashflow frauds
You probably know how difficult it is to run a cash business successfully. Monitoring the sheer volume of transactions can be a tall order for any entrepreneur. There is no hard and fast rule that such an owner will have a background in accounting. This is the reason why you go out of your way to hire honest individuals. You may even employ the services of an agency to run a background check on them. However, experts specializing in this field say this may not be enough to prevent frauds and embezzlement. You never know when they may be facing a desperate situation. This could result in addiction to drugs, incurring huge debts, undergoing a messy divorce and disgruntlement. Their circumstances may force them to resort to become dishonest. This is when they resort to such nefarious activities.
Steve Sorensen Embezzlement How to prevent cashflow embezzlement in your business?
Like most entrepreneurs, you don’t expect your employees to be perfect in carrying out their responsibilities. They do make unintentional, honest mistakes from time to time. After all, they are human beings and not robots. You may give them a thorough dressing down for such actions. However, you do accept that this is part and parcel of managing a business.
On the other hand, the experts of Steve Sorensen Embezzlement team say you shouldn’t become complacent. Research shows small organizations can incur losses equivalent to 5% of their gross revenue from embezzlement. You obviously don’t want to face such a situation. The last thing you want is to file for bankruptcy. Fortunately, you can prevent the occurrence of cashflow frauds in your business.
These specialists clarify you should take the following three important steps to safeguard your business from such activities:
- Implement and enforce stringent inventory controls
You need to realize that cash frauds take place where entrepreneurs fail to enforce proper inventory controls. You may be operating a popular restaurant or bar in an upmarket locality. You have to set precise specifications for portions of all food and drink items your customer’s order.
Moreover, you need to enforce rules to ensure your employee follow such guidelines to the letter. Again, you need to have a proper point of sale mechanism in place. The system enables you to record the exact quantity sold to each of your customers.
- Ensure proper delegation of responsibility
You should never have a single employee managing your organization’s cash. This will ultimately tempt him/her to resort to dishonest means. Before you know it, he/she may start to siphon off of the money. To prevent this, you need to introduce a system where the one staff member monitors the duties of another. This goes a long way in preventing the occurrence of frauds and collusions.
- Increase salaries
This is an effective deterrent to all types of cashflow frauds. When employees hear that they are going to get a pay rise, they are less likely to steal. They get the feeling that you show concern for their financial well-being. They may even put their best foot forward in carrying out their responsibilities.
The experts of Steve Sorensen Embezzlement team say you should never consider cashflow embezzlement as a normal business expense. You could lose the confidence of your clients in the long-run. This could adversely affect your market operation. The above 3 important means can help you prevent the occurrence of such frauds and collusions.
