A question of trust

Trust in business is a tricky issue. Small business owners need to ensure that they protect themselves and their firm from those unscrupulous businesses and individuals that would take advantage of them.

However, there is also a danger that by being too cautious business could be lost, or potential clients could get their noses put out of joint if you ask too many questions and/or ask for too many contracts to be signed.

Trust in business does not just extend to clients but to staff as well. While for any firm to run effectively trust must exist between the owners and the employees this trust should be earned and when hiring staff thorough checks must be made.

Kerry Katona (her that used to be on the Iceland adverts) is taking her financial and legal adviser, David McHugh, to court over suspicion that he has defrauded her over substantial amount of money.

McHugh holds no formal accounting qualifications or professional qualifications and was convicted for fraud in 2004. However, before we all feel smug - Katona doesn't seem to be the brightest spark in the room - it is worth noting that a SME survey by the Association of Accounting Technicians (AAT) found that 80% had no idea if their accountant is a regulated member of a professional body.

"You wouldn't employ a solicitor that didn't belong to the law society or visit a doctor that's not on the register, so why trust your company finances to someone who's not regulated?" said Adam Harper, Director of Professional Development at the AAT.

Small businesses must not insolate themselves and trust no one, but they must also ensure that they know who the people are in their organisation are and whom the companies and individuals that they are dealing with. Check, check and check again.






Post Date: September 4th, 2009