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Preventing Fraud in your Business

Small businesses are very vulnerable to internal fraud. Larger companies have internal controls which reduce the likelihood of fraud. But small businesses generally do not. In addition, research shows that employees of small businesses are LESS likely to report co-workers for stealing than employees of large businesses. They are LESS likely to report friends if they see them stealing. And they are LESS likely to report their boss for falsifying documents.

Small businesses need to establish an ethics policy and continually remind employees of that policy.
How to create a code of ethics for your business.
In addition to an ethics policy, you need to have some minimal procedures in place to reduce the possibility of theft. Here are three resources: