To adequately prevent fraud, you should take steps that touch every player in your business—your customers, your employees, and even you. Here are some moves you can make to checkmate fraud in your small business:
Address customer issues that may lead to business fraud
While many customers interact with your business to make genuine purchases, some may still try to defraud you. The first step in preventing customer-based fraud is to identify the channels through which customers can rip you off. If you run a retail store, for example, you’re in danger of losing products through direct theft or being given fake currency. If you run an e-commerce site, you’re in danger of not being paid at all. Invest time into finding out all the ways you can be defrauded by customers, and be sure to put measures in place for all of them.
Address employee issues that result in business fraud
You can’t take any chances if you have employed staff to work for you. To checkmate employee-based fraud, start by establishing a company policy that warns against fraud, outlines the types of fraud, and details the consequences of violating these terms. In addition, it’s a smart move to regularly educate employees on small business fraud. Organize monthly meetings to discuss with employees and help them understand the importance of being transparent and accountable in business.
But it doesn’t end there. Certain employees may be in positions to comfortably commit fraudulent acts and go unnoticed—for instance, an accountant who is solely in charge of bookkeeping functions. If possible, ensure that at least two employees handle the different functions of keeping accounts and handling cash. This makes it a lot easier to detect and prevent fraud.
Use inventory and accounting software to prevent business fraud
In today’s business world, accounting software platforms give you more control over all areas of your business. With Vencru, you can keep track of all your stock and stay on top of every product sale. You also have your records updated automatically whenever a transaction is made with a customer.
Good inventory and accounting software like Vencru can help you analyse your stock easier and more often, identifying loopholes and possible instances of fraud. More importantly, you can rest assured that your accounting reports are without errors, whether intentional or unintentional. Make a bold move to transform your business by entering Vencru today.
As a last resort, many small business owners decide to bring in an external accountant to address cases of fraud. We’re not sure whether you may need to try that in the near future, but we’re confident that you have what you need to checkmate small business fraud. Use the tips above to make fraud prevention a priority for your business every single day, so you can keep growing your business without hassles.