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How Prevent Embezzlement and Theft as a Business Owner?

how to prevent embezzlement

Many people start businesses with stars in their eyes. They only imagine the ideal scenario in which customers love their product or services, employees are loyal and trustworthy, payroll and benefits flow smoothly, and their bank account grows continuously year after year.

This isn’t a description of reality, of course, because real life is messy and business is even messier. That’s why we offer professional bookkeeping services specifically tailored for growing companies, including analytical procedures that can be used to detect fraudulent activity in your books.

Wondering how can a business owner prevent embezzlement and other types of theft? Here are our three tips for protecting yourself and your business to put into practice today.

How to Prevent Embezzlement: Our Top 3 Tips

#1. Don’t Let The Same Person Open Mail And Enter Financial Data

When this job function is performed by the same person, it creates a prime opportunity for manipulating account information. By separating this job function, or using professional bookkeeping services to take it completely out-of-house, you reduce the chance that incoming payments and invoices can be altered without your knowledge.

#2. Keep Company Checks Under Lock & Key

No matter who handles your payroll services, it’s important to treat checks like the precious cargo that they are. Once printed, checks should be put in a safe place that’s only accessible to a few, qualified people. If not, they could be altered before and after signing to great detriment.

#3. Don’t Let The Same Person Prepare And Sign The Checks

Similarly, it’s important to separate the job functions of preparing and signing checks. Ultimately, only the business owner and one other person should have the capability to sign checks. Using a professional bookkeeping service to print and sign checks, or utilizing direct deposit, the chance of fraud is greatly reduced.

Remote Quality Bookkeeping wants your business to be protected from fraud. Contact us to learn more about how professional bookkeeping services can help!

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Book your free demo today to learn how a virtual bookkeeper can save you time and money for your business.

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