I was recently quoted in a News & Observer article on how credit cards can be used effectively by small business owners and their employees.
While I agree that company credit cards are a useful tool that can provide flexibility and convenience for both the employer and employee, there is another side of this discussion that wasn’t fully addressed.
Easy Fraud Targets
Credit cards can also be an easy means for unscrupulous employees to commit fraud .
I have worked with small business owners who were forced to try to save their business after an employee has taken advantage of undue trust and lax oversight.
Small Businesses Need Systems
One of the best ways to manage this risk is to establish appropriate controls in the bookkeeping and accounting system. For a small business that can be a challenge given that there are often only a few people to divide duties among. However, there are many safeguards that are available to help overcome this limitation.
Setting up a secure system to manage the use of credit cards and other financial tools in your business helps to foster a culture of integrity that will build upon itself. Putting the effort in from the start and implementing an ongoing monitoring process can be the difference in a business that is successful and one that ends in a tragic mess.
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