PPB April 2018

S mall businesses in all industries, including the promotional products industry, are littered with tales of trusted CFOs, business managers and even family members fraudulently bilking business owners out of substantial money. Not only does this affect a business owner’s profits, it can tarnish their reputation and have a lasting impact on their livelihood. Small businesses (organizations with fewer than 100 employees) are the most common victims of fraud. In 2016, the Association of Certified Fraud Examiners reported that 30 percent of all fraud cases involved small businesses. Fortunately, you can take action now to help detect and prevent fraud within your business. One of the most important first steps every business owner should take is to implement effective internal controls within their organization. Internal controls are processes and procedures put in place to control risk by safeguarding assets, ensuring operational compliance and confirming accurate financial reporting to help you achieve your business objectives. There are five key factors for establishing effective internal controls for your business: 1 Segregation of duties 2 Policies and procedures 3 Documentation 4 Oversight and review 5 User access and rights Five Factors That Help Protect Your Assets And Your Company by Greg Muzzillo Why Your Business Needs Checks And Balances 66 | APRIL 2018 | THINK