One of the lessons of the recent economic
downturn was the need for all businesses and organisations to remain alert to
the potential for fraud.
Entrepreneurial owners of SME’s are a prime target for fraud as
overseeing finances doesn’t always come naturally to them. If a founder is
focusing mainly on the product or service being sold, and only minimally on
administration, it leaves a business vulnerable to fraud.
In smaller organisations fraud can take many forms e.g. invoice
scams, to suppliers providing kickbacks for inflated purchases, theft of stock,
fictitious expenses etc.
For larger organisations the potential for various fraud
activities exists but the numbers involved are far greater.
It is vital that all organisations have systems in place to
monitor all of the company’s finances and commitments in a clear and concise
format.
Simple but effective systems of checks and balances can go a
long way to limiting if not removing the risks.
It is all but impossible to ensure that any organisation is
“fraud proof” but by establishing robust and efficient systems some measures of
comfort can be introduced.
Competition is hard enough without having to face another
drain on your company’s resources.
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