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Credit and background checks may stave off fraud for small businesses

Aug 22, 2012 Walt Wojciechowski

There are a number of tasks on a small business' checklist to success. However, not all of them receive the proper amount of attention, such as the role consumer credit data plays in preventing fraud. Part of the hiring process for any prospective applicant should be a comprehensive background check. This will cover elements that include criminal background checks as well as investigations into potential substance abuse and large outstanding amounts of debt. Furthermore, preventing fraud will require implementing process for the after-hire process. For example, Business 2 Community suggests adopting rules for expenditure approvals in which they all must be approved by the owner or an appointed individual. "This way, all the expenditures will be recorded and you will not be confused about where your money is being spent," the website notes. "The same should be done with cash flow. It should always be monitored so that you are up-to-date about the cash inflow and outflow in your organization." There are numerous background and credit check services from which small businesses can choose. While some are more standard, a burgeoning part of the industry is offering credit reports that include payments on all types of bills.