Employee theft and embezzlement can take place in any business. But, it strikes smaller businesses in larger numbers; in part as too frequently owners do not have the right balances and checks in place. Employee embezzlement is a common incidence in every type of business. This wrong practice is causing companies to lose notable annual profits and chunk of revenues. As per a recent survey it has been found that reliable employees steal from a company more frequently than newcomers. In addition, companies lose on profits and annual revenues owing to employee fraud or theft. Prevention of employee embezzlement may seem difficult at first glance, but it is definitely not an unfeasible task.
Steve Sorensen Embezzlement provides tips on how to prevent employee embezzlement
Business owners should learn the art of the game before dealing with unforeseen and unlawful activities. No matter how experienced the employees may be or how much faith you have in them, you should never ever belief them blindly. Make sure that there are proper balances and checks in place for preventing the business from employee embezzlement. Steve Sorensen Embezzlement is a well-known Certified Public Accountant from Colorado. He is an experienced financial consultant and business writer and assists clients plan, manage, and reach their financial goals. He writes embezzlement related articles along with other business topics.
- It does not matter how much you trust your inventory manager, employee embezzlement can still take place at anytime. Thus, as a business owner, it is your responsibility to keep a close check on inventory in order to be sure that no awful activity is taking place. Keeping track of inventory offers you with a clear picture of your inventory level which will simplify your decision making process. Apart from this, along with keeping an inventory record of high-value items, you should also keep a record of low-selling, damaged, and out of date merchandise.
- From homes to corporate, employee embezzlement is common in all walks of life. You can never think of maintaining complete control over your business matters if you do not succeed to create a culture of sincerity. Those employers who are able to influence a high-level control over their employees can expect to create a culture of sincerity and confidentiality. This indicates that employees would feel unwilling to get involved in any misdemeanors which may lead them to face lawful proceedings. It is the moral duty of an employee to report any fraud or theft to higher management rather than supporting any wrongdoing.
- It is important to keep the personal and business accounts separate. Any fraudulent account activity or discrepancies found in statements and bank accounts must be taken care of intelligently. Correct bookkeeping records will result you to a better position to make significant financial decisions. For the avoidance of employee embezzlement, you must keep a standard check in place for getting the correct picture of the finances of business.
Steve Sorensen Embezzlement also offers recommendation to companies on employee embezzlement, lawfully reducing taxes, and improving complete financial structure. Being a CPA he understands the professional standards of State and Federal Laws.