“Money” maybe just a single word, but the efforts, time, energy, and resources you have put in to earn it, can’t be explained in words. In fact, it won’t be wrong to say that it is a powerful weapon. Thus, it becomes more than crucial to use it responsibly.
How To Ensure Your Employees Are Using Corporate Money Responsibly?
Now, here’s the catch! When it is your money, you use it properly and for the best. But when you give it to others, you put your trust in it that they’ll also use it wisely. Yes! Here we are talking about you and your employees. The corporate money you are earning includes your hard work and determination. That’s why when you give it to your employees for some company work, you have expectations from them.
However, as per the report of The Association of Certified Fraud Examiners, on average, businesses (especially the small ones) lose 5% of their gross revenue in financial fraud in the U.S. This amount may not seem a big deal for some, but the truth is that it is a big deal! That’s why you need to take some measures to prevent such frauds.
But how? Well, you need not worry about that! We’ve got you! We have written a few measures that’ll ensure the appropriate use of corporate funds. So, let’s get started!
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Offer them a fairly good salary.
When the staff is not satisfied with their salary, it is natural that negative thoughts will cross their mind. That’s the reason why, whenever you recruit new people, you should offer them a salary as per their experience and capabilities.
There may be a possibility that they accept a low salary in the beginning just because they are in need or want to enhance their experience. However, if their work is good and is beneficial to the organization, you should consider raising the salary. This way, they will offer their best to the company in return.
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Use special corporate cards for transactions.
On average, a company has to make several transactions in a day. It can be for purchasing something, payment to a third party, or traveling costs. To provide your personal card for such transactions is not a wise decision, as it can get lost or the funds can get mismanaged. Therefore, “you need corporate cards”, as it can help you control the cash flow and keep everything under budget. Moreover, there are separate types of cards that can be used for specific purposes. It’ll help you keep your accounting in check.
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Always collect the receipts.
Whether your staff buys a small pin or heavy machinery for the work, it is essential that they have an original receipt/invoice of it. It will help you understand how company funds are being used by employees. And in case the company doesn’t need the tool or equipment now, you can replace it if you have the receipt. Thus, helping the company save money.
To sum it all up!
It is always a great idea to be cautious in matters including money, especially when the money’s of the corporation. It will help keep all the financial statements appropriately and provide you with peace of mind that the money is being used responsibly. Because remember:
“Every penny counts!”