If you’re a small or medium size business owner, chances are you’ve got employees (or contractors) who are using company funds, whether it’s for lunches, travel, or electronic equipment. But are you confident that your employees are using company money responsibly? That they’ll follow the rules and spend money only on company business? If you’re not, don’t worry—you are not alone. Here’s how to avoid common mistakes and to ensure your employees are using company funds appropriately.
It’s no surprise that the average age of a gamer in the United States is 35, and that a significant portion of that age group has children. With the gaming industry now worth an estimated $70 billion, it’s not just children who are getting in on the action—it’s their parents, too. According to one study, up to 20 percent of video game players are over the age of 50 (1). With the average cost of a game sitting at around $60, that means your company is likely handing out $3,200 to $6,400 to employees to buy Xbox, PlayStation or Nintendo games each year. The good news is all of these numbers are going up as games become more popular.
Money may be just a word, but the effort, time, energy and resources you spend to earn it cannot be put into words. In fact, it wouldn’t be wrong to say it’s a powerful weapon. Therefore, it is more than important to use them responsibly.
How do you ensure that your employees handle company funds responsibly?
And here’s the kicker! If it’s your money, use it well and to your advantage. But if you give it to others, trust them to use it wisely too. Yes! In this case, it’s you and your employees. The business money you make includes your hard work and dedication. So when you give your employees the opportunity to work for the company, you have expectations of them.
However, according to a report by the Association of Certified Fraud Examiners, businesses (especially small businesses) in the United States lose an average of 5% of their gross revenue to financial fraud. This amount may seem insignificant to some, but it is in fact very important! Therefore, there are certain steps you should take to avoid these scams.
But how? You don’t have to worry about that! We got you! We have developed a number of measures to ensure that company assets are used correctly. All right, let’s go!
Offer them a living wage.
When employees are not satisfied with their salary, it is normal for negative thoughts to arise in them. Therefore, when hiring new employees, you should offer a salary that matches their experience and skills.
They may settle for a low salary to start with, simply because they need or want to expand their experience. But if they do a good job and benefit the company, you should consider a pay raise. In this way, they will offer the best to the company.
Use special corporate cards for transactions.
On average, a company needs to make several transactions per day. This could be a purchase, a payment to a third party or travel expenses. Making your personal card available for such transactions is not a wise decision as it can be lost or the money misused. That’s why you need business cards, because they help you manage cash flow and stay within budget. Moreover, there are certain types of cards that can be used for specific purposes. This will help you stay on top of your accounting.
Always collect receipts.
Whether your employees are buying a small pen or heavy equipment for work, it’s important that they have the original receipt or invoice. This allows you to track the use of company funds by employees. And if the tool or equipment is not currently needed by the company, you can replace it if you have a receipt. This saves the company money.
It’s always good to be careful with money, especially if it’s a company’s money. This helps you keep track of all financial records and gives you peace of mind that the money is being used responsibly. Because you remember:
Every penny counts!
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Frequently Asked Questions
How do employees benefit from corporate social responsibility?
Corporate social responsibility (CSR) is a hot topic for companies with global businesses. In fact, many companies around the world are now required to uphold fair business practices, treatment of workers, and maintenance of the environment as part of their duty of care. But why do companies do it? How is it beneficial to the bottom line? To start with, it’s good PR. Another big reason why CSR is important is because of the benefits it gives to employees. One important benefit is that it gives them a sense of purpose and high morale. When they have a sense of purpose, they are going to be much more motivated to give it their all in their jobs. Additionally, when they have high morale they will also be more willing to go above and beyond in their jobs.
How is a business responsible for its employees?
It is a topic which is not so much of a problem in the Western world, but in the developing countries, as well as in the third world countries, there is a problem that needs to be dealt with. How is a business responsible for its employees? How can a business deal with the problem of worker’s rights? It’s been a bad week for America. A series of hurricanes destroyed homes, businesses, and our infrastructure, and left us with a staggering bill to be paid. But no matter how bad things get, and no matter how much the government tries to rescue us, it’s the human spirit that always seems to pull through. Take the people who work in the Whitehouse. Admittedly, they’re not the most efficient or productive group of employees. But they did just manage to get a government shutdown lifted, and that’s something. That’s why it’s so important for a business to be responsible for it’s employees, especially when they’re hard-working and motivated.
What is corporate social responsibility for employees?
R ussians are famous for their hospitality, but it is not always shown by our employers. Most people in the country work a lot and for pretty long hours, sometimes not even getting time for a lunch break. The only thing the employer is thinking about is the profit he´s getting from hiring his employees. The more money an employer makes, the more likely he is to be socially responsible in his business, and even give back to the community. Corporate social responsibility (CSR) is a concept wherein companies engage in “goodwill” activities outside of their business operations. These activities can include community involvement, social programming, environmental conservation, and philanthropy. The business logic is that performing activities that are considered socially responsible or good corporate citizenship will, over time, yield a positive impact on the company’s image in the marketplace. To fully appreciate how CSR activities reach this outcome, it is helpful to understand how social media outreach works. Social media is a powerful force to be reckoned with in the online world, and businesses now have an opportunity to use it to their advantage.
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