The coronavirus outbreak is a global event that has affected our economy and businesses in so many ways. With significant changes in business operations and work-from-home practices, the risk of internal frauds can be heightened. There are typically fewer employees in the office, and this can create opportunities for dishonest employees to steal critical data and money.
With that in mind, we are going to take a look at some ways to pandemic-proof your business and protect it against internal fraud:
Use Check And Balance System- make sure that multiple people check and verify each financial transaction and decision. There should be different persons who authorise disbursements, payroll, and purchases. Ensure different people also handle payments and keep financial records. In a small business with a few employees, owners should directly evaluate and verify any payment.
Reconcile Bank Accounts- each month, small business owners should examine checks and bank statements. There should be an independent person who reconciles bank accounts with internal financial records. If there are cancelled checks, make sure that you recognise the vendor.
Restrict Use Of Business Credit Cards- credit cards are a risk factor of internal frauds. Limit access to business credit cards. They should be accessible only to business owners and trusted individuals. Set an account limit for each card. With each purchase or payment, the employee should submit the original receipt. Each month evaluate credit card statements to find any inappropriate activity.
Limit Uses of Business Assets- computers and other digital devices should be used only for business purposes. Make a hierarchy of authorisations that assign each employee with proper security levels. Maintain access logs for each account. Account owners should regularly do verifications to detect unauthorised access.
Implement Multiple Authorisations- when employees access critical business or customer data, it should be authorised with multiple people, including IT administrator and the employee’s head of department. When employees access the data from home, require them to use antivirus and commercial firewall solutions to prevent data theft.
Protect Petty Cash Funds- petty cash funds are vulnerable to theft or fraud. Cash should be kept in a safety box and only one trusted individual should have the key. There should be a receipt for the use of petty cash, including the date, the person who made the payment and the payment amount. Before replenishing the petty cash safety box, reconcile the previous records.
Contact Dave Kearns
To learn more ways to pandemic proof your business against internal fraud, contact Dave Kearns today.
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