5 Tips to Keep Your Small Business Safe from Fraud

When starting or running a small business, it is essential to keep an eye out for potential fraud, especially since you probably don’t have the resources to pay for the damage that could result.

Below are 5 tips that will help your small business stay safe.

  1. Keep Your Check Books Locked. Do not empower any of your employees to sign checks. Keep your checkbooks and your bank statements under lock and key.

  2. Do Not Hire Unknown Employees. Make it a point to hire new employees only after cross-checking their references. Get complete details of all your new employees including their photographs, addresses, and other personal information.

    Many small businesses go bust due to the inner cancer of dishonest employees. While watching your front end for dishonest clients, you also need to keep your back end covered.

  3. Do A Thorough Check Before Offering Credit. Before setting credit terms with your clients, make sure their credit standing is acceptable otherwise, you can kiss your products (as well as your incoming payments!) goodbye.

  4. Stay Away From Get-Rich Schemes. Many dishonest dealers target small businesses by offering them various unbelievable offers, since they know that entrepreneurs are often desperate to make it to the big leagues.

    Stay away from any offer that seems too good to be true because it probably is.

  5. Communication And Alertness Is The Key. By keeping communication channels open, and by being alert with your employees, suppliers and clients, you will catch wind of potential fraud before it happens.