A Cachet and Payroll Tax Management (PTM) Remarketer recently alerted us to an incidence of attempted fraud. Fortunately, they had strong risk management procedures in place and were able to handle the situation without any financial restitution needed.
In light of this, our topic this week is Risk Management and the different measures that a company can implement in order to establish procedures for various payroll processes, protect themselves from NSFs, reconciliation tips, etc. We will be posting ten tips throughout the week so be sure to check back every day to see every helpful guideline.
Every business model will differ slightly, even in our tight-knit industry. First, think about some key factors related to risk.
Tip 1: Consider your niche market. The first step in creating Risk Management guidelines for your company is to assess your potential risk. Do you specialize in a certain sector of the market, such as restaurant payrolls? You need to understand the potential risk of any niche market in which you specialize. Restaurants are notoriously bad at cash-flow management and far more likely to NSF. Understanding your potential risk as it relates to your niche market will help you create a plan that works for your business.
Tip 2: Consider the policies of your bank or ACH processor. Timing is of the essence when it comes to items that put your business at risk. Look at your bank or ACH direct deposit payroll processor’s policies… How soon are they notifying you of a client NSF? Do they give you the ability to suspend or reverse files? You will need to tailor your risk management policies accordingly.
*Check back every day this week for more helpful tips regarding Risk Management that could potentially save your company a lot of time, money, and stress.