1. It starts with hiring…that’s right – here’s where it starts BUT it does not end with hiring. Hiring the right person in the first place is extremely important; however, it does not guarantee that this perfect candidate will not turn into an embezzler given the right opportunity....
...It just means that maybe you did not hire one in the first place and you will have time to create the necessary internal controls. Remember, NEED + OPPORTUNITY is the intersection embezzlement is most likely to take place.
2. NEVER, NEVER, NEVER lose control of your MONEY!! Learn where to keep your finger on the pulse of your finances. After all, you do not have the time to waste time focusing on the wrong things. Learn the ONLY ways cash can leave your business: checks, wire transfers, cash, credit cards, ATM……limit the ways money can leave your business. Do not allow ATM cash withdrawals on your business checking account, always have a check and balance system for any cash, always have control over your credit card transactions as well as your credit card. Perhaps you should not allow any wire transfers at all!
3. EVERY MONTH review your bank transactions. Become familiar with them so when you look at your bank statement, rather than it looking like a pain in the butt to try to figure out, jump in with both feet and train yourself to understand every single penny going in and out. These days, bank statements can look pretty scary with all of the debit transactions, cash withdrawals, automatic payments, etc. Limit or eliminate all transactions that you do not have control over. For instance, that cash withdrawal on 9/15/08? Can you prove it is not yours? If you do not allow ATM cash withdrawals at all, it should never end up on your bank statement to begin with!
PREVENT YOUR BUSINESS FROM BECOMING NAKED TO EMBEZZLEMENT
This is very sound advice, too many times people lose sight of the basics that form the core of the protection of the business! Good Write_up!
Posted by: Stephen Holt | October 23, 2008 at 09:53 PM