- Fraud or fraud can take many forms in F&B businesses, from data manipulation to stock theft, and can have a major impact on the financial and reputation of the business.
- ERP can detect and prevent fraud through features such as data automation, audit trails, access restrictions, and real-time reports that help with monitoring and transparency.
- Measures such as selecting the appropriate ERP, training the team, and conducting regular evaluations help businesses make the most of ERP to prevent fraud.
"Have you ever felt suspicious about certain transactions or reports that don't seem right in your business? Or maybe there are irregularities that make you think,
"Something's not right here..."
Well, fraud is not something to be taken lightly. Many might not realize it, but those small, seemingly insignificant details can become significant opportunities for unscrupulous individuals to damage the business system you've worked so hard to build.
But don't worry! With today's technology, there are easy and smart ways to protect your business from such issues.
One of them is with an ERP (Enterprise Resource Planning) system.
So, if you want to know how an ERP system can help you avoid fraud and deceit, keep reading this article!
What Is Fraud and Deceit in Business?
Fraud in business can take many forms.
Simply put, fraud is any intentional act to deceive or steal, whether it's money, goods, or even company data.
Deception, forgery, and theft can happen in many ways, even those we might consider trivial, but they can lead to significant losses for your business.
For example, in the F&B world, imagine if some raw materials just ""disappeared.""
Or perhaps there are financial transactions that aren't recorded clearly. These could be signs that someone is playing dirty.
Even manipulating financial reports to make it seem like everything is running smoothly when there are hidden issues can seem minor, but over time, it can become a ticking time bomb.
Why is this kind of fraud so dangerous?
Fraud doesn't just damage the financial condition of a business, but also its reputation.
If people start to realize that there's deceit happening, customers and business partners might lose trust. Once trust is gone, it's incredibly hard to regain.
And that's why it's crucial to have a system that not only makes business operations easier but also prevents fraud at every level.
ERP records all transactions neatly and can be monitored from anywhere in real-time.
No more chances for data manipulation or behind-the-scenes play.
Everything is transparent, everything is recorded.
And most importantly, your business becomes safer and can grow without the burden of lurking fraud.
How Does an ERP System Help Detect Fraud?
You might be wondering,
""How exactly can an ERP system help you detect fraud?""
Well, it's not just about recording transactions. An ERP system is equipped with cool features designed to protect your business from the threat of fraud and forgery.
Let's look at some of the main features that make ERP a powerful tool for detecting and preventing fraud!
1. Automation and Integration: Reducing Errors and Increasing Transparency
One of the big advantages of an ERP system is its ability to automate many processes, meaning all data from various departments is integrated into one platform.
If you've been using manual processes, you've probably encountered input errors. With automation, an ERP system can record transactions without excessive human intervention, leaving no room for small errors that could lead to fraud.
2. Audit Trail: A Tracking System That Monitors All Activities
This feature is like your business's private detective. With an audit trail, every transaction in your business is automatically recorded in detail, including who did it, when it was done, and what changes were made.
This helps you detect suspicious activities or transactions that shouldn't be happening.
So, if someone tries to forge or alter data without permission, the audit trail can be strong evidence to find the culprit and minimize the risk of fraud.
3. Access Restrictions: Strict Access Rights for Data Security
Fraud often occurs because of gaps in data access. That's why an ERP system will have access restriction features.
You can set who is allowed to view or change certain data according to their role in the company.
Not everyone can access important data at will. With this, the risk of data manipulation or theft of valuable information is drastically reduced because only certain individuals have access rights.
4. Real-Time Reporting: Always Up-to-Date Data Monitoring
Another advantage of an ERP system is the ability to generate real-time reports. This means you can see the state of your business at any time with the latest data.
Real-time reporting makes monitoring easier and faster because you can immediately see if there are transactions or figures that don't match expectations.
So, if there are indications of fraud, you can take action immediately without waiting for monthly or year-end reports, which are often too late to prevent it.
Practical Steps for Implementing ERP in Your Business
Okay, so you know that an ERP system can help detect and prevent fraud. But you might be wondering,
""So, how do you implement it?""
Here are some practical steps you can follow to ensure that ERP implementation goes smoothly and effectively in your business.
1. Choose an ERP System That Fits Your Business Needs
Every business has different characteristics and needs, so the ERP system you choose must truly meet your business requirements.
Make sure you choose an enterprise resource planning system that has the necessary features to monitor transactions, access data, and prevent potential fraud.
Don't hesitate to discuss with the vendor about the features of the ERP system they offer, including security, automation, and compatibility with your existing systems.
The right ERP system will be a strong foundation in maintaining the transparency and security of your business.
2. Provide Training for Your Team to Maximize ERP Use
Having an ERP system without a team that can operate it is like having a sports car but only a learner's permit.
To fully utilize all the features in the ERP, it's important to provide training to your team. Ensure all team members, especially those related to transaction data and oversight, understand how to use the system correctly.
This training will help the team become more comfortable with the ERP and more adept at detecting potential fraud from the start.
3. Conduct Regular Evaluations to Ensure the System Is Effective
ERP is not a system that runs automatically without monitoring.
Regular evaluations are needed to ensure all ERP functions are working optimally, especially in detecting theft or forgery.
Schedule evaluations, whether monthly or quarterly, to review reports, audit trails, and determine if adjustments are needed. These evaluations can also be the right moment to add features or upgrade the system if needed to keep your business safe from fraud threats.
What Can We Understand Together?
We can see that fraud is not something to be taken lightly, especially for F&B businesses that must maintain customer trust while focusing on managing daily operations that are quite energy and emotion-consuming.
Considering using an ERP system is not just an option, but a crucial preventive step to protect your business from potential losses, both financially and in terms of your brand's reputation.
If you're starting to be interested in exploring more about ERP, you might want to check out Opaper's product called Opaper LinkPro.
Opaper LinkPro is one of the ERP systems designed specifically for F&B businesses, making it perfect for needs such as managing the purchase of raw materials from suppliers, scheduling deliveries, stock types, and payment arrangements.
With Opaper LinkPro, inventory reports become more accurate and easy for your team to understand.
Even better, you can download several reports at once with a single click. No more need to manually combine data that's as voluminous as a small town's population.
This system also has many practical features, such as Inventory Management, Material Rejection, Purchase Order directly connected to WhatsApp Business, and Low-stock Alert notifications to let you know when stock is running low.
Imagine how much time and effort you can save with just these features.
So, why not take a closer look and see how Opaper LinkPro can help you manage your business more structurally?
That way, you can focus on other important aspects of your business without worrying about fraud that could lead to losses."