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If your finances aren't balancing, it could be because one of your employees helped himself to your money

by , 03 December 2014
Do you prefer to do business the old fashioned way? Do you think accounting books and cash deposits are still the way to go?

While some old school methods of doing business may be better, this isn't the case when it comes to your finances!

The reason is these methods leave your company wide open to theft and employee fraud. And sadly, I'm not even talking about theft from the outside. I'm talking about your employees stealing your company's money.

Don't think it won't happen to you. According to greyvensteins.co.za, 80% of South African businesses experience this kind of employee fraud and theft.

So if your finances don't balance at the end of the month, it could be because of employee theft.

Luckily though, you can stop this by opting for more modern ways of running your business.

Here's how...

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Don't let your business be another fraud statistic...

Use modern business solutions to stop employees from stealing your company's money

Let's say you prefer to do cash deposits when it comes to transferring your company's money. This means you need an employee to take the cash to the bank and deposit it. 
Because this transaction happens out of your sight, you can't control what happens. 
For example, if you give your employee R20 000 to deposit as a payment for a supplier, and he only deposits R18 000. Then tells you there wasn't enough money when he got to the bank. You might assume you just miscounted and give your employee another R2 000 to deposit. 
This could go on for ages and you may not even realise it. 
But you can avoid all of this by switching to electronic banking systems. This way, you know exactly where your money's going and the whole transaction happens right there in front of you. 
But be careful! Even Internet banking and business solutions aren't completely fraud and theft-proof. But if you follow these six steps you can fix that.
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Follow these six steps to ensure your Internet banking isn't vulnerable to employee fraud and theft

Step 1: Make sure only the right employees have authorisation rights to access and use your company's online banking profile.
Step 2: Ask all your suppliers for proof of their banking details so you can see when a payment goes to an unknown bank account. 
Step 3: Load your suppliers as beneficiaries to stop employees 'making a mistake' with the payment and putting it in to their own bank account.
Step 4: Create your online banking profile so it asks for authorisation before anyone can load a payment.
Step 5: Check these four points before you authorising any payments:
1. Valid beneficiary/creditor; 
2. The amount matches the invoice/document; 
3. The payment date's correct; and 
4. You have enough funds to pay the creditor. 
Step 6: Store all documents relating to each transaction so you can go back and look for any inconsistencies later. 
Moving your business to modern business solutions and following these six steps to control it will help you protect your business' finances against employee fraud and theft.
For everything you need to know about protecting your company against fraud, check out The Essential Fraud-Proof Business Guide

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