Year End Review: Do You have an Embezzlement Problem?
There are generally two ways for a business to make more money: increase revenues or reduce expenses. As you do a little year end reflection on these two aspects of your company consider having some independent professional look at your expenses. You may glance at your American Express Statement and see that it seems to be at monthly number that you come to expect but what's really in there?
Whenever I have been involved in embezzlement cases it is almost always a trusted employee with a lot of access to a credit card. In most cases the theft goes hidden because the long time employee is not only the person abusing the card but he is also the person responsible for paying the charges. The fact is: no one ever looks at the statement for years. Soon the recurring charge that always seems to be around $3500 already has your employee's entertainment expenses and cable bill buried in it.
There's lot of inexpensive ways to protect your business. Consider dividing bookkeeping tasks and shifting responsibilities on a regular basis so that no single employee has too much authority. The fact is that an employee will be far less likely to steal if she thinks she might get caught.
When you do catch an employee stealing there is a lot to do. And it's best not to go it alone, overreact and destroy an opportunity to recapture some cash with a quick resolution. Pennsylvania employers may be able to file for injunctive relief using constructive trust or fraud theories. There are criminal implications, insurance issues, and most importantly, collection issues.
At this year's retreat take a hard look at your expenses. Don't delegate to your staff. If you would like to tell your story of embezzlement or need some help with an audit drop us a line.