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CAPITAL IDEAS c a p i t a l i d e a s e d m o n t o n .c o m
P R O J E C T L E A D E R : K A R E N U N L A N D , 7 8 0 - 4 2 9 - 5 5 3 0 ; h e l l o @c a p i t a l i d e a s e d m o n t o n . c o m
CAPITAL QUESTION:
UPCOMING:
What can be done to protect 14 a business from fraud? OCT
Capital Ideas members share tips for staying safe
How do you keep the cash flowing?
OCT
After Business Mixer and Tradeshow
20 20-25 OCT
“Silos create fraud opportunities; expose shady areas with process floodlights. Checkpoints in the process that allow the audit of business transactions by a second set of eyes create a verify and validate stage. Good due diligence rather than assumptions is also mandatory. Have credit-approval strategies based on fraud prevention practices, build them in, and then follow them. You can’t eliminate fraud, but you can make it more difficult.” — Angela Armstrong, president of Prime Capital Group — pcclease.com “Get a respected, trustworthy bookkeeper and accountant. Make sure there are checkpoints in your process by several individuals along the way. This is imperative, as it makes sure that everyone takes responsibility. Most importantly, do monthly internal audits of your books and accounts. Check, check, check and know your numbers inside and out!” — Shannon Lenstra, president of Konstrux Developments — kon-strux.com “Looking at and understanding your financial tools is paramount. Schedule it into your month to go over your profit and loss statements, balance sheets, bank statements and credit card statements with a bookkeeper. Not watching these will leave you open to someone taking advantage of the situation.” — Laurie McNaughton, coach at ActionCOACH Business Coaching — actioncoach.com/lauriemcnaughton “Segregation of duties is key. Especially in the role of finance, try and have one person that prints and signs the cheques and someone else who enters the data to issue the cheques. As well, placing various financial controls to oversee cheques going out, deposits being reconciled, and conducting random internal audits will help prevent fraud.” — Ashif Mawji, CEO of NPO Zero — npozero.com “While many businesses pay attention to the prevention of external fraud, it is internal fraud which seems to sometimes catch a business by surprise. To prevent employee fraud, have written policies in place, which are communicated to all employees on a regular basis, that express how an employee can anonymously report suspicious dealings in the company and what the penalties would be for a fraudulent employee; and walk the walk. Tone from the top is imperative to ensure a culture of transparency and honesty can thrive in your business. Do not fudge your own expense reports, and when an employee is implicated in a fraud, deal with it very swiftly and in accordance with your written policies.” — Laura Schuler, general counsel at Schuler Law Group
A panel discussion for entrepreneurs hosted by Capital Ideas Where: Edmonton Journal (10006 101st St.) When: 12 p.m. to 1 p.m. Admission: Free. Details at capitalideas32.eventbrite.com
A celebration of the vision and dedication of Edmonton’s small business during Small Business Week Where: Muttart Conservatory (9626 96A St.) When: 5 p.m. to 7 p.m. Admission: $15 to $25. Details at edmontonchamber.com
Edmonton Startup Week 2014
OCT
Katie Pearse, co-owner of Green Clean Squad Organic Cleaning Co. (greencleansquad.ca), says that in the service industry, requests for pre-payment are crucial. “We ask our clients to fill out a comprehensive, secure online client profile and read through a detailed service agreement. It’s our policy to not clean for anyone who hasn’t filled it out. This ensures we aren’t wasting time and resources reserving appointments for people who are fraudulently booking. It doesn’t solve everything, but it helps prevent wasting our employees’ time showing up for non-existent appointments.”
A Small Business Week webinar from ATB Business and BizLaunch When: 1 p.m. to 2 p.m. Admission: Free. Details at atb.com/businessweek2014
OCT
15
PHOTO SUPPLIED BY: KATIE PEARSE
Cyber Security: Data Defence for Your Small Business
21
A five-day celebration of Edmonton’s growing startup community Where: Startup Edmonton (10359 104th St.) Admission: Varies. Details at edmontonstartupweek.com
Small Business, Big Vision Luncheon Join John Stanton, CEO of The Running Room, as he shares the culture and core values of his organization Where: The Fairmont Hotel Macdonald (10065 100th St.) When: 11:30 a.m. to 1:30 p.m. Admission: $49.95 to $69.95. Details at edmontonchamber.com
“Most businesses will at some point end up victims of fraud. Do reference checks 2014 Productivity Summit: NOV on employees and criminal record checks It Begins at Why on people who will be in positions of Information and inspiration to help organizations responsibility with access to business assets continue building on productivity Where: Northlands Expo Centre (7515 118th Ave.) … Reconcile your bank accounts monthly and When: 5 p.m. Wednesday to 5:30 p.m. Thursday scan the transactions to see if they appear Admission: $350. Details at productivityalberta.ca reasonable. Reconcile accounts receivable/ payable regularly. Have policies regarding personal use of computers … and always Have an event that Capital Ideas should know about? Contact us at hello@capitalideasedmonton.com investigate when something appears to be suspicious … Approve and initial all payables before payment. Once paid, they should be marked as such.” — Lorn Stanners, chief informing officer at Financially Speaking — financiallyspeaking.ca
26-27
COMMUNITY QUESTION:
“Businesses should consider implementing a reporting hotline to provide a mechanism for employees, customers and vendors to report instances of fraud while maintaining their anonymity. A 2014 global fraud study indicated that approximately 42 per cent of frauds were detected by tips provided to the organization, whereas internal audits and external audits only account for approximately 14 per cent and three per cent of detected frauds, respectively (2014 ACFE Report to the Nations on Occupational Fraud and Abuse).” — Cory Sutton, investigative and forensic services manager at MNP — mnp.ca “As an IT company, we make a practice of educating our clients’ employees on how to deal with fraudulent emails. Viruses that exploit information are generally sent via emails, so when in doubt, ask your IT expert and don’t give out any confidential information.” — Catherine Vu, chief uptime officer at Proactive IT — proactiveit.ca These answers are in response to a question posed by Wellington Holbrook, executive vice-president of ATB Business. Here’s his take: “Business fraud is growing, and there are more threats than ever facing businesses, and there are a few things that business owners must do to keep safe. For example, as it pertains to protecting yourself from cyber-fraud, change your passwords frequently and always have the most upto-date anti-virus and spyware (one might be surprised how many people don’t do that!). Be very careful who has access to your systems. If you are in the business of selling hard goods, make sure you are investing time in ensuring that you have good inventory controls and systems as well (small theft, even from employees, can lead to big costs over time). Above all, make sure you are talking to the professionals that can help you, even your banker! Banks have solutions for many regularly encountered problems, from cheque management to money-movement security, so talk to those professionals around you who can help you keep your business safe.”
Which is more effective: Face-to-face networking or social media? Networking is key to growing a business, but how you do it can make a world of difference. That’s why this week Beverley Jackman, web designer and social media manager at Beverley Jackman (beverleyjackman.com), is asking you to weigh in. Which is more effective: Face-to-face networking or social media? You can answer the question in two ways: • Open today’s Capital Ideas email if you’re a member, or • Visit capitalideasedmonton.com We’ll publish the best answers, along with your business name and website address, on Oct. 15. Have a burning business question of your own? Submit it to capitalideasedmonton.com/ask.
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