A recent survey by professional networking site LinkedIn has highlighted that unfortunately employees of all kinds (not just MPs) can be tempted into unethically supplementing their own income. Up to 40 per cent of UK small businesses have lost money from staff putting through inaccurate expenses claims according to this research, while another quarter of the companies questioned admitted to having no idea as to the extent of staff making false claims. Furthermore, only half of respondents could be confident that they hadn’t lost any money through staff lining their own pockets with company cash. With a recession in full flow, this practice could grow with people looking to take advantage of avenues that can improve their bank balance.
For small businesses, illegitimate expense claims can leave a dent in finances, significant enough in the current climate to cause cash flow problems. This can be mitigated by keeping tab on all money that comes in and out of the door through some effective cash flow management. With one in 10 small businesses, according to additional research, now assessing their own expenses systems by tightening up processes, investing in new accounting software or boosting accounting staff, cash flow can improve. However, every small business can take preventative measures by implementing a simple and efficient finance management system and it doesn’t need to cost much. But it can sure help highlight where the cheats are!
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