Employee
theft is among the biggest problems faced by the small business owners in the
United States. Steve Sorensen
Embezzlement points out that while issues of employee theft and fraud
can happen with almost all businesses, it tends to hit the smaller firms more
as their owners generally do not have the right checks and balances in place.
Steve Sorensen is Colorado based Certified Public Accountant, business writer
and financial advisor. He is known to provide sound advice to companies in
issues regarding avoiding employee embezzlement, as well as legally reducing
business taxes.
The
instances of employee embezzlement are quite common in businesses of almost all
types. This unethical practice additionally causes companies to lose a
considerable amount of annual profits and revenues. Steve Sorensen Embezzlement
mentions that studies shockingly show that old and trusted employees steal
from a company much often than the newcomers, and hence it is vital for firms
to have a proper system in place to avoid such eventualities. Even though
employee embezzlement prevention may sound like an
extremely difficult task at first, it is not an impossible one. Moreover, with
the assistance of experts like Steve Sorensen, this task can become relatively
simple for any company.
Here are a
fewprevention tips mentioned by him:
Create a culture of honesty: Right from the house to the workplace, people might face the issue of employee embezzlement almost anywhere. In order to have a good level of control over their business matters, it is vital for companies to create a culture of honestly and transparency there. Only the employers who can leverage a good level of leverage over their employees can be successful in creating a culture of honesty and privacy at the workplace. Doing so shall indicate that the employees would feel reluctant to get into any type of misconduct that might lead to them facing legal charges.
Keep track of inventory: No matter how much a business owner may trust their inventory manager, employee embezzlement can take place at any point. They should keep a close eye on the inventory all by themselves in order to be 100% that nothing wrong is taking place under their nose. Keeping an orderly track of the inventory all by themselves shall provide the business owners with a clear idea about its level, and hence they would be able to identify any discrepancy at once.
Review Bank accounts and statements: To have a more systematic audit trail, all business owners must keep their personal and company accounts separate. They must also make sure to wisely take care of any fraudulent account activity found their bank account. Regular check of this account can significantly help in preventing employee embezzlement.
Create a culture of honesty: Right from the house to the workplace, people might face the issue of employee embezzlement almost anywhere. In order to have a good level of control over their business matters, it is vital for companies to create a culture of honestly and transparency there. Only the employers who can leverage a good level of leverage over their employees can be successful in creating a culture of honesty and privacy at the workplace. Doing so shall indicate that the employees would feel reluctant to get into any type of misconduct that might lead to them facing legal charges.
Keep track of inventory: No matter how much a business owner may trust their inventory manager, employee embezzlement can take place at any point. They should keep a close eye on the inventory all by themselves in order to be 100% that nothing wrong is taking place under their nose. Keeping an orderly track of the inventory all by themselves shall provide the business owners with a clear idea about its level, and hence they would be able to identify any discrepancy at once.
Review Bank accounts and statements: To have a more systematic audit trail, all business owners must keep their personal and company accounts separate. They must also make sure to wisely take care of any fraudulent account activity found their bank account. Regular check of this account can significantly help in preventing employee embezzlement.
In addition
to the above-mentioned tips, business owners should also conduct a
pre-employment check prior to hiring any new employees to their organization.
