If you are a firm owner of a convenience stores, retailer shops, or gas stations, how do you protect your business from employees abusing your firm line of credit? If you control a small business then you’ve most likely created some credit lines with local vendors. If you have a business that has workers then you may have to trust other people to use those credit lines on your behalf.
Businesses frequently have employees such as runners, someone who submits their expense report. Certain people that are trusted to pick up tools from time to time. For example if you own a carpentry shop, plumbing company or other such business. You are the boss and you often need things however you don’t have the time to be running out to the store every time someone in your store needs something. So then the apparent solution is you direct someone to go out and do it. Unless you want to give that person cash every time you need something you have already established some sort of credit line.
Normally the firm you established the credit line with will have the person picking up the item sign a receipt to acknowledge the payment for their records and then give a second copy to your worker. It is your worker’s responsibility to give you that copy so you can pay the bill when it comes due. Over time as the person doing your shopping becomes known to your suppliers, then the opportunity for misuse manifests itself.
When it is time for you to the bill, you should make careful notes about it. This is your chance to check and see if any other suspicious event is taking place. Check the invoice for unusual information and things like the date of the purchase was made and if included on the invoice what time did they make the purchase? Was the purchase made during normal business hours or was it after? Often such fallacious purchases are made on a weekend. People that abuse your trust many times could try to do things after hours and will get with the vendor about working late.
There are certain steps you can do to avoid the problem. Most vendors hold a list of official signors from your company. That way if you see a signature you do not distinguish the vendor can be held responsible for permitting the payment. It will still be your obligation to handle the employee and their conduct. You can also request the vendor to send copies of all invoices to you so that you can verify all purchases. You can make it known to all employees that you do check all the bills and invoices from your vendors just so that you can discouraged them from doing something they shouldn’t.
Nearly all employees would never consider abusing the trust given to them by an employer but there are always certain one that feel they can slip one over on the boss. They could want to get back at you due to not giving them a promotion, or being frustrated about something. The point of course is that it does happen but it can be prevented before it happens.
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