Simple Steps to Reduce the Risk of Embezzlement and Theft

Reduce the Risk of Theft

In an ideal situation, customers and employees are honest and supportive of your company. Even though small business owners want to believe that their employees are trustworthy and loyal, there are situations that occur where an employee might try to steal money from the company. If you want to minimize risk, then it is essential that you have systems in place to reduce this type of activity.

Here are a few steps that you can use to decrease the chances of theft and embezzlement within your company:

Check Preparation and Signing

When paychecks or other costs are paid, make sure that there are at least two sets of eyes on every check before it is sent. The best solution is to have one person cut the checks and another person who has signing power for the checks.

Many businesses choose to have an employee or outsourcer that manages the check processing. Then, a business owner or manager is the one to look through the checks and mark their signature before the checks are distributed.

Divide Out Responsibilities

Don’t have the same employee manage all of the office tasks that involve money and transactions. For example, if an individual opens the mail and does the data entry into the computer system, then there might be an opportunity for that person to change the numbers. Look for ways that you can separate job functions or even take these tasks out of the office by hiring an outsourcer to help.

Run Background Checks

Before you hire a new employee, there are advantages to checking their criminal history. Even if someone doesn’t look like a criminal, you never know if you can judge their past by their appearance. There are many background check companies that offer these services for a reasonable price, giving you the peace of mind to know that you aren’t hiring a criminal.

Keep Credit Cards and Checks Locked Up

Leaving the company checks or credit cards laying around the office is a recipe for disaster. These items need to be treated with respect, and you should keep them out of reach. Invest in a safe for your office and keep the door locked at all times. Don’t hand out the safe access information to employees within the office.

At Easier Bookkeeping, our team can help you put systems in place to reduce the risk of fraud and theft. We invite you to contact us right away for more details about the services that are available: (888) 620-0770

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