Studies show that as a business owner, there is a 100% chance that your employees will steal from you.
It may not be deliberate or done with nefarious intent, but they will steal!
It is better known by its official name: Fraud.
Just one of these three need to be present:
2. Pressure (or Incentive)
3. Justification (or Rationalization).
They are all important but if your business operations create the opportunity for fraud…Let’s just say it is similar to my mum warning me not to steal meat from the pot when it is just right there calling my name. (That is the link!)
The only way to combat Fraud in a business is through an effective Internal Control System (ICS)…even at that, it is still a battle.
Small businesses typically cannot afford to hire full ICS teams/specialists.
That is why I am giving these tips to help with establishing one if you are a small business.
In reality, most Small Business Owners are a “one-man wrecking crew” when it comes to Internal controls in their businesses, but they are paying for it with their health… sanity…or both.
This is because it is a lot to handle, and they literally have to be vigilant at all times to catch thieves. That can be quite exhausting.
So, what is needed is an effective system to prevent, deter, and possibly catch folks who want to mess with your hard-earned resources.
Deny them the opportunity.