How proactive are you in protecting your small business? Small businesses are among the easiest targets for fraud because they tend to have fewer anti-fraud controls than larger organizations. 31% of all fraud committed is against small businesses. On average the typical small business loses nearly 5% of annual revenue to fraud.
It is important to be proactive in the prevention of fraud in your small business. Below are a few tips to keep your business safe:
- Create a clear division of labor within your organization. Often there is one person with responsibilities that span multiple departments. Try to cut down on the amount of access given to one person.
- Analyze data each month. Many business owners go months without checking their books. Stay on top of everything coming in and going out, that way if there is an abnormality you can spot it and addresses it immediately.
- Use pre-printed checks to make for easier tracking.
- Do regular spot checks. Doing regular unannounced spot checks keeps employees on their toes. If the do not know when you will be doing an internal audit they are more likely to shy away from anything that can lead to a theft and fraud situation.
For more information on keeping your business safe, contact your local BookKeeping Express today.