Employee theft can be a serious problem for small businesses. Business owners can lose thousands of dollars, if not more when an employee steals money. According to Entrepreneur, small businesses are more likely to suffer from embezzlement because owners do not always have the right checks and balances to prevent it from happening.
How can you stop employees from stealing from your company?
Keep clear records
To avoid the possibility of embezzlement, you need to keep clear records of your money’s movement. If money comes into the business, put it in a bank account. If money leaves the business, take it from the checking account. You can clearly see all disbursements on your bank statements. If you have a bookkeeper who makes false entries, you can catch it.
Review statements often
Do not announce when you plan to look at financial statements. Periodically look at your bank statements, your payroll and credit card statements. Look for any inconsistencies or sign that someone may be using the money for without your permission. You can also set up audits regularly so that a professional can analyze your books.
Be careful who you trust
To be careful does not mean that you should treat your employees with distrust. You simply need to be aware and proactive because embezzlement could happen to your company. Hardworking and trusting business owners can be targets. As a business owner, use financial controls when it comes to your bookkeeper. There should be checks and balances. Those who worry about checks and balances are often those who break the rules.