Disaster Preparedness for Small Business - Part I

 The terrible tragedy in California reminds us that small businesses must be prepared for disasters. 

The most precious asset? The hardest to replace?  Records and documents.

Some suggestions:

Keep an extra laptop, loaded with all licensed software, offsite.

Cloud software offers some security, but you may be offline for a long while.

Backup hard drive files on a portable hard drive, place in a safety deposit box or at home or both (remember the bank is only open 40 hours a week).

Certain key records, like an employee roster with phone numbers, should be kept offsite in old fashioned paper.

Electricity and the Internet may be down for extended period of time. Buy and charge some small power packs designed to charge smart phones. 

Keep a log book with important passwords and combinations. Keep it secured offsite. This is not just for disaster prep.

Keep a list of key phone numbers, including customer service numbers, helplines and banking phone numbers offsite in paper or a spreadsheet. 

Documents not requiring high security can be emailed to yourself as attachments. Even if access is not immediate you will have access to them on-line. 

Have extra building keys secured offsite.

If you home is in the same danger zone as your business you may need a third party to keep some of your  backups. In sealed envelopes of course.

If your home is in the same danger zone as your business you may need a different place for storing backup material.

Also, your lawyer, insurance agent and accountants serve as a backup for some but not all documents.

Theft - Where is the Inventory Going?

Retailers have a problem. Grocery and restuarants have a problem. Lots of companies have a problem.

Merchandise walks away.

Your financial security depends on the products you stock and sells.

Internal controls are the first line of defense, training and monitoring by active and visible managers.

Internal controls (starting with standard well-tested controls) must be customized and cost effective.

More to follow......

Theft - Who is checking payroll?

 Payroll is a repetitive, data intensive, complicated and just not a lot of fun.

Owners and managers tend to delegate as much of the task as possible and let someone else take care of payroll.

Owners and managers tend to, if anything, review totals and check on payroll taxes. Some do not do that on a regular basis.

There are a number of ways people can steal during the payroll function. Some in-depth reviews, at least occasionally, may deter theft.

Theft Prevention - Reviewing Debit and Credit Card Transactions

 

SUBSTACK POST

https://tomealey.substack.com/publish/post/151289135

It Can't Happen Here

 It can't happen here.

Theft and embezzlement cannot happen here.

I (CEO) know this because ________________________.

It CAN happen here.

Following on the blog will be a series on preventing embezzlement.

Account Payable Scams

 Your business office receives an email with a request for E-payment, and links are provided.

The name and amount look legitimate (either a regular vendor or for goods/services you would normally use).

So Accounts Payable personnel pay the invoice, and you have now lost $xxxxx to scammers.

Check, recheck and double check. Use the old fashioned telephone if necessary. Do document matching.

Complex Regulatory Issues - Part 2 - EEOC publication - harassment guidelines

 The federal Equal Employment Opportunity Commission has published a comprehensive guideline paper on harassment issues in the workplace.

https://www.eeoc.gov/laws/guidance/enforcement-guidance-harassment-workplace

Our commentary to follow.