INSTANT MBA: You Need To Have A Check And Balance System In The Company

Business Insider

Today's advice comes from our interview with Greg Jones, CEO of BookKeeping Express:

“Most small businesses owners, unfortunately, are very much caught up in their world of running their business. And they falter with... putting in place the strategies and programs and methods to stay abreast of what’s happening in the organization, and when you don’t do that, that allows others, whether they’re in the organization or outside the organization, to take advantage.”

You want to give your employees the benefit of the doubt, but you should also be careful and take certain precautions to make sure the interest of your business is protected, says Jones. Many small business owners fall victim to fraud because of a lack of checks and balances in the company.

Jones recommends three ways to deter fraud in your organization. One is a division of labor. For example, don’t have same person handing out paychecks and managing your books. The second is job rotation, which ensures checks and balances between your employees. And third, Jones recommends to outsource some of the financial work to have an external pair of eyes as well.

“It’s a touchy situation... [but] you need to approach it as what’s good or what’s bad for the company.”

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