Ethics is a philosophical term that refers to the study of goodness and right action. Business ethics is the practice of applying ethics to business operations. Business ethics typically involve businesses holding themselves accountable to make business and operational decisions that support fair, transparent, and honest business practices. But business ethics is not one-size-fits-all; read…
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What Is a Lapping Scheme? How It Works & Prevention
A lapping scheme is a type of employee fraud wherein the fraudster pockets the payment of one customer and applies the payment of the next customer to the first customer’s invoice.
A lapping scheme is usually caused by poor segregation of duties, nonexistent or inefficient internal controls, and inadequate supervision. Understanding how it is perpetrated in the business can help you detect it before your losses eat up your profits. We’ll teach you what preventive measures you can take against this fraudulent act, such as rotating…
How Does Depreciation Affect Cash Flow?
Depreciation doesn’t impact cash flow because it is a noncash expense. However, depreciation has an effect on the cash flow statement when the indirect method is used in computing cash flows from operating activities. Understanding the impact of depreciation on cash flow in the operating activities section can help you plan out future cash flows…
What Is Vendor Fraud? Types & Prevention Tips
Vendor fraud is committed by vendors who scam a business by asking it to pay more than originally owed, delivering counterfeit goods, or charging for items or services that weren’t delivered or performed.
The main challenge is finding a way to uncover vendor fraud since fraudulent acts are performed with the intent to conceal them. Businesses with weak or missing internal controls are at a high risk of this type of fraud. In this article, we’ll talk about the different kinds of vendor fraud and give you some…
What Is the Gig Economy?
The term “gig economy” describes one-time tasks and services performed for a fee, as opposed to traditional employer-directed jobs performed for a wage. Many people conversationally refer to gig work as “gig jobs,” which can confuse things. Gig work is not a job in the traditional sense. Gig workers are independent contractors, not employees. Most…
What Is the SBA Guarantee Fee? How It Works & Examples
Small Business Administration (SBA) loans are issued by participating lenders designated by the SBA but are guaranteed by the government in the event of a default. To cover the potential costs of a default, an SBA guarantee fee is often included as part of the costs associated with getting a loan. The amount of this…
What Is Invoice Fraud? Examples & Prevention
Invoice fraud is a business fraud wherein scammers send fake or falsified invoices to businesses.
Discovering invoice fraud is alarming, especially for businesses relying on technology in their operations. Without understanding what invoice fraud is and how to prevent it, you’ll be at a higher risk of falling into these traps. In this article, we’ll discuss the different kinds of invoice fraud and give you some tips on how to…
10 Effective Customer Service Channels for Small Business
As a small or startup business, it’s imperative that you offer customers as many different customer support channels as possible. Not only is it important to reassure them that their investments in your products or services are secure, but it’s vital that you’re able to provide support in case something goes wrong. Thankfully, there are…