Embezzlement is defined as “the theft or misappropriation of funds which have been placed none’s trust or belonging to one’s employer” and throughout the years this crime has cause the downfall of many businesses. As a business owner, you must be aware of every risk that exists under your roof be it with the running of the business itself, the market and, often most importantly within your workforce.
Unfortunately there are many people in the world who want to get a step up the ladder by any means possible and they can often find it difficult to resist temptation when it comes to large sums of money and they decided to embezzle funds to line their own pockets. This is not something that is rife but it is common enough that Steve Sorensen embezzlement professional, can make a living in helping businesses to avoid this fate. If you want to avoid this happening in your business, here are some ways that you can do it.
Don’t Be Ignorant
Never think that this could not happen to your or your business, it is not just something that exists within high level companies and if you are aware of the possibility that it could happen to you one day, you are going to be far more likely to be on the lookout for it taking place. Almost all cases of embezzlement comes from trusted individuals within a small company setting.
Every piece of money that comes in to the business should go through a checking account so that it can provide you with a record of any receipts and disbursements that there may be, these can not be tampered with as it is the bank who controls them. Anyone who has access to the company books can make tweaks or alterations to suit themselves but when cross checked with the bank, these will show up as errors.
Separation of Duties
Having the same employee working as a vendor and setting up the payment and approving checks is not a good idea and you should aim to separate these duties so that not one employee is responsible for every part of the transaction. This is a good strategy for avoiding embezzlement and it removes temptation for any employee to cook th ebooks for their own benefit.
Your company should regularly carry out audits on its books and this should preferably be done by an outside source so that there can be no in-house collusion. An annual audit is a good idea but you should also use the audit as a threat or a warning shot so that anyone who considers embezzlement is aware that at any given time, an auditor can come in and pore over the books. This is a preventative measure as well as one which makes sure that you company books are in good shape thus providing a win-win for your business.