Improving the company’s bottom line is naturally one of the primary goals of any business owner in Houston. While this includes building profits, companies also need to protect them from theft. According to the Small Business Administration, employees may be contributing to losses, and there are ways employers may be able to prevent this prevalent source of fraud.
An employee may not be intentionally siphoning off company resources, but failing to be aware of the security risks may be just as devastating. Workers should be taught how to identify these and protect confidential materials regarding clients, personnel and company finances. Setting up policies and procedures to this effect and developing ongoing training for new and established employees are two essential measures to preventing losses due to fraud.
The SBA recommends another important method of eliminating employee theft: background checks. Employers do not need consent from a potential employee in order to search public records for criminal convictions or bankruptcies, although other types and sources of personal information may not be accessed without permission.
The people who have access to the business’s financial information may be in a more likely position to embezzle funds, but these may be monitored closely through inventories and other methods of oversight. Smaller companies often have fewer resources for setting up checks and balances, and that may be one reason they are more susceptible to this crime. Statistics indicate that companies with 100 or more employees typically have 28 percent lower revenue losses due to fraud.