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Dangerous Fraud Types that Can Ruin Your Business

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Dangerous Fraud Types that Can Ruin Your Business

Being a victim of fraud is an unfortunate reality of many aspiring entrepreneurs. According to research, nearly 49.1% of respondents cited financial pressure as the biggest culprit for fraud increase. Due to fraudulent activities, businesses can lose from a couple of thousands of dollars to actual millions. The two most basic types of fraud are the misappropriation of assets by employees and fraudulent financial reporting by management. Both types often happen without the knowledge of employees or management. Let’s dig a bit deeper into different kinds of fraud.

Double check fraudDouble check fraud

Bookkeepers are perfectly capable of committing fraud and this fraud type is very difficult to spot. For example, every time your business needs to pay for something, a bookie can write two checks at the same time, addressing one of, say, $1,000 to the actual legitimate recipient and the other of $100 to themselves. They can code both checks in the accounting system under the name of the mentioned recipient. This kind of fraud is extremely sneaky for two reasons: firstly, it is the bookkeeper’s job to take note of a business’s finances and, more often than not, these experts aren’t under anyone’s watchful eye. Secondly, sending a seemingly duplicate check for a smaller amount of money doesn’t grab too much attention.
Being careful when hiring an accountant is pretty much the only way that you can make sure that your bookkeeper is to be trusted.

Over-ordering fraud

This mostly relates to those employees or office managers who are in charge of placing routine orders. The person in question can start over-ordering regular office supplies that the company doesn’t need and returning them in exchange for gift cards or for a full or partial refund.
Maintaining solid contact with your supplier can easily give you the telltale signs of an ongoing over-ordering fraud, seeing as how they will have a paper trail of sold/returned merchandise with all the details. Secondly, prevent this from happening to begin with by hiring good employees and by being good to them – disgruntled workers will consider stealing a righteous move.

Internal theftInternal theft

Fraud can be as simple as internal theft, which is basically when an employee starts taking office supplies and/or products that your company sells without paying for them. When a worker is surrounded by large quantities of the items that your company sells, it is easy for them to grow increasingly tempted and to finally start stealing your products. Keep an eye out for inventory shrinkage in order to spot this fraud type.

Payroll fraud

Payroll fraud can include either employees or management, or even the two groups working together. Here’s how it works: once a firm takes on a new client, their payroll account needs to be synced up with their time-keeping system. Without this, a cunning manager can round up a couple of workers and have them work massive hours while getting paid huge amounts of overtime. Essentially, this way, the employees can claim to be working on two separate construction projects at the same time, which is, of course, absolutely impossible and will cost you a ton.
It’s not a question of finding who’s responsible for obvious financial loss – the culprit(s) is bound to surface; it’s a question of not getting into this type of a situation to begin with, seeing as how once the money is gone, it’s gone for good. Not letting anything slip through the cracks is essential here as well as investigating any discrepancies. An expert opinion is always welcome, so opting for forensic accounting is an investment well worth the price.

Friendship fraudFriendship fraud

This is pretty much the worst fraud type as it directly affects a business owner’s personal and professional life. Good and trusting people are usually the victims of this kind of fraud. Although being backstabbed by the best friend is an absolutely realistic scenario, this usually happens when hiring your friend’s relative as a favor. While employing people that you know is in no way a mistake (knowing someone personally can give you an even clearer picture of how they might perform at work), doing this solely as a favor automatically implies that you might not have done so without knowing this individual prior to recruiting them.
Being able to switch between your business and personal “face” is a trait that many natural entrepreneurs have, but also a skill that is best learned from other people’s examples. Hiring someone solely because of friendship, family, obligation or sympathy is never a good idea.
Do not give your employees a reason for talking about nepotism and know when to socialize and when to show a cold-hearted business face.

Fraud can easily cause your finances to plummet and even destroy your business. Knowing the fraud types and how to spot them is essential in making sure that your business remains afloat.

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Business

Here is Why You Should Use Web Content Filtering

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In today’s hyperconnected era, the internet has become critical for your business performance. It allows your staff members to seek information, collaborate, and share files in real-time. There are also many web-based platforms that can simplify almost any aspect of your business operations, from bookkeeping to project management.

However, do your employees always use the internet the way they should?

To take a break from their complex daily activities, even your most diligent employees will surf the web, share videos, and quickly scan their social media accounts.

Even though taking a selfie and posting it on Instagram or responding to a friend request on Facebook takes only a few seconds, stats say that these activities may harm the overall workplace performance and cause greater costs. According to Office Team, employees spend 5 hours weekly on non-work activities, which may lead to a worrying loss of $15.5 billion in lost productivity.

One of the most effective solutions to this problem is web content filtering.

Web Content Filtering Defined

When you’re filtering online content, you’re using a piece of software to identify and exclude any forms of inappropriate or dangerous content for your company. These tools recognize character strings that, if matched, indicate that the content is not appropriate for your organization. These could be suspicious files, spammy website content, pornographic content, and even social networks.

Now, let’s see what the benefits of web content filtering are for your business.

Tightened Network Security

The number of cyberattacks is growing. Unfortunately, it’s unlikely that this trend will die down in the next few years. Namely, today’s online hacks have evolved, which makes them harder to predict and recognize.

Above all, most of them target small businesses. Research says that more than 70% of companies that are hacked are SMBs. The reason for that is simple – small businesses still don’t understand the importance of cybersecurity and are not equipped to fight sophisticated online threats.

One of the most frequent types of cyber threats is phishing attacks. The hacker’s goal is to deceive a user to steal their valuable data. This form of online breaches involves a myriad of tactics that are carried out through emails, social networks, IM platforms, etc. Some well-versed cybercriminals even build fake sites that look trustworthy and then ask users to provide their sensitive data.

Unsurprisingly, employees’ negligence is the greatest cybersecurity risk. Most of them will click on spammy ads, odd links, and download files from unreliable resources without thinking about the consequences of these activities.

This is where web filter solutions help. Namely, they provide services like information control, URL filters, traffic control, proxy control, behavior analyses, and online bandwidth management to prevent infected files from reaching your employees’ inboxes. And, even if an employee receives a malicious file or link, web filters will instantly block their access to such content.

Greater Workplace Productivity

Social networks are often being referred to as workplace productivity killers.

Still, is banning them a good option? Probably not.

First, this may hurt employee satisfaction and indicate that you don’t trust them enough.

Second, social networks are important for building brand awareness. When reposted on your company’s profile, your employees’ behind-the-scenes photos and videos may help you humanize your brand.

However, web content filtering lets you set stricter rules on what kind of content should be accessed at work. You don’t have to block social networks, but you can always filter out not-suitable-for-work (NSFW) websites, such as online shopping platforms, as well as gambling, torrent, gaming, or entertainment sites.

Maintaining Brand Reputation

Your employees’ lack of knowledge may not only hurt your network’s security, but also ruin the reputation your company has been building for years. Just remember that U.S. Airways’ social media manager accidentally published an X-rated photo on the company’s Twitter account. Even though they reacted fast by deleting the photo and apologizing, they still received lots of negative press.

Therefore, web content filtering may be one of the most effective ways to maintain a spotless brand reputation in the digital world packed with spam. URL filtering and real-time monitoring of online activities will reduce the disasters caused by employees misusing the internet, such as publishing offensive content, illegal file downloads, or publishing inappropriate content on your corporate accounts.

Conclusions

The power of web content filtering goes far beyond improving cybersecurity. This is one of the most effective ways to limit your employees’ access to non-work sites and, in this way, increase their productivity and prevent them from sharing any inappropriate content.

Sure, to get the most out of this strategy, don’t forget to educate your employees. They need to know how their use of the internet impacts the overall image of the organization. Most importantly, they should be aware of the major cyber threats and know what to do if they come across them.

 

Hope this helps!

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Business

5 Tips to Improve Customer Experience

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One of the biggest challenges that a lot of Australian enterprises are struggling with is the question of how to improve your overall customer experience without changing too much of their current business model. The reason why this is so important is due to the fact that a customer experience tends to be the number one reason why people return to your business and there’s an estimate that it’s five times cheaper to retain a customer than gain a new one. In order to make all of this work to your benefit, here are five tips to improve your overall customer experience.

1.      Simple navigation

From the moment people enter your website, they need to be able to discern what is what and where they should go next. Some people make a mistake of presenting website visitors with too many clickable elements and information early on, in fear that they won’t be able to see all that their website has to offer. The problem is that this only makes it harder for people to make up their minds. One study shows that the more option you present a person with, the less likely they are to actually make a choice. With that in mind, make sure to let them explore your domain one step at a time.

2.      Listen to customer feedback

The next thing that you should consider when you decide to improve customer experience is asking people what they want. Sometimes you don’t even have to ask, seeing as how people might already be actively complaining about what your business lacks. So, check out some reviews and social media comments with your brand mentions in order to see what people want. Other than this, polls and surveys can also be a great source of information and you should never neglect this vast potential. This way you can get the answers on questions that you find relevant, thus gaining actionable information instead of raw data.

3.      Look for professional help

In the past, entrepreneurs, especially those running digital businesses had to face all of these ordeals on their own. Nowadays, on the other hand, both locally and globally, it’s quite easy to find affordable professional help. For instance, as an entrepreneur behind an NSW-based enterprise, you can just look up management consulting firms from Sydney and schedule a meeting. Due to the fact that these agencies specialize in improving your company’s interaction with its customers, the improvement to the customer experience is both immediate and easily noticeable.

4.      Be consistent

The next thing you need to understand is the concept of nostalgia and the fact that people tend to be emotionally entangled with familiarity. In order to exploit this phenomenon to your own advantage, you need to learn how to become more consistent. For this to work, your brand needs to have its own identity and even if you decide to change a thing or two in order to stay in touch with the time, this change shouldn’t be too drastic. People don’t usually react positively to change, especially if it’s drastic or sudden. For your content marketing, make sure that you have the same people behind it all the time.

5.      Don’t be too pushy

There’s a saying that if you love something, you should let it go. The same principle applies in the business world, as well. You see, by being too aggressive with your post-sale follow up you’ll scare people away. People are always interested in what they need and rarely in what others need from them. The fact that you want them to come back means nothing to them, however, if you make a good first impression, once they need you, they’ll be sure to come back.

Conclusion

As you can see, each of the above-listed tips is fairly easy to implement and it doesn’t require you to deviate too far from the path that you’re already on. In other words, you gain quite a bit without having to make unnecessary sacrifices or compromises. This is a clear win-win scenario and a great boost for your business model.

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Business

Universal Guide to Starting Your First Enterprise

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Regardless of how happy you are with your current employment, at one point in the future, you may decide to start your own business. There are so many benefits of this kind of a career move, ranging from the fact that you’ll be your own boss, all the way to the fact that your income will drastically increase, once your business grows out of its proportions. The best thing about this is the fact that never before was there a better climate to start a small business or a startup. In fact, as many as 97 percent of startups employ less than 20 people, which means that by starting modest, you’ll quickly be able to catch up with them in size. Here are five guides to help you get there in no time.

1.      Put your thoughts on paper

One of the most important things that you need to understand is that no matter how great an idea sounds in your head until you put it to paper, you won’t know what you’re dealing with. Writing a real business plan is one of the most effective methods of verifying your business idea. Second, if you decide to look for investors, later on, they’ll insist on seeing your business plan (possibly even checking out a prototype). Either way, it’s something that can come as incredibly handy.

2.      Decide how you will fund your business

The next thing that you need to understand is various options that you have available when funding your business. The majority of entrepreneurs use their personal savings or loans to start a business, which leaves them with full ownership of the enterprise in question. About 38 percent of these startups and small businesses are financed from funds borrowed from friends and family members. Other options that you have available are venture capital or angel investors, yet, attracting these investors is not an easy task. Finally, in some fields, it’s possible to go for crowdfunding as a fundraising method.

3.      Determine a business structure

Depending on the origin of your initial capital, you might need to opt for a more complex ownership structure than you’ve initially intended. Still, even if you don’t plan to run as a partnership, it’s crucial that you determine a business structure of your enterprise as soon as possible. If you’re a sole owner, running as a sole proprietorship may seem like an obvious choice. Nonetheless, this is a scenario that can be quite risky, due to the fact that, if things go wrong, you risk even your other personal assets. Therefore, it’s advised to go for an LLC (limited liability company) for the sake of safety.

4.      Take your first steps as an enterprise

Once you’re done with the groundwork, you need to take steps that will legally make you into a business. First, you need to register a company which will require you to submit necessary paperwork or go via an online platform, which is a lot simpler. Second, you need to get a tax ID number. Once this is done, you can start establishing both your online and offline presence. The sooner you start, the sooner you’ll get to the point where your business is making a profit.

5.      Don’t rush in

The last thing you need to understand when it comes to running your first enterprise is that you can’t afford to be reckless. First of all, no matter how good your idea may sound, there are so many ways a startup can fail and, even if you’re careful, some of these things might happen to you. Therefore, take it easy, don’t invest more money than you can afford to lose and start by taking calculated risks in order to learn the industry. Most importantly, if your enterprise doesn’t require too much time, it might be wise to keep your day job for a while.

Conclusion

In order for this guide to be universal, we had to focus on those issues that aren’t industry-specific. Acquisition of specific tools, experts and getting your hands on all permits and certificates is something that you can worry about later on.

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