A 2014 study by the Association of Certified Fraud Examiners found that the average business loses an estimated 5 percent of annual revenues due to employee theft and fraud, with small businesses affected the most. More than ever, it’s incumbent on business owners to implement proactive measures to detect and prevent potential employee fraud.
What Can You Do?
- Monitoring customer orders – For customers doing business with you for the first time, be extra cautious and pay particular attention to what they buy and how they pay for it.
- Prevent embezzlement – For a better audit trail, consider having separate accounts and separate employees for accounts payable and accounts receivable.
- Initiate background checks – Pre-employment screenings are a must in today's business climate.