http://www.knoxnews.com/news/2011/apr/21/party-mom-leslie-janous-vanishes/
http://www.knoxnews.com/news/2011/apr/19/tenn-woman-admits-she-embezzled-490000/
Employers always have more theft internally than externally, unfortunately; however, there are steps you can take to protect yourself.
1. Audit (use either an outsider; or if you have the knowledge and expertise internally, use them--just make sure the auditor is not going to be in a position to be coerced or encouraged to join in any irregularity). Using an outside auditor gives employees less liklihood of being in a position to coerce or join in any misdeeds. It also keeps employees on their toes so employees who are teetering on doing something illegal, are less likely since the chances of being caught are dramatically increased. Vary the audit, schedules are too easy to skirt; surprise inspections or audits are good--especially if something just doesn't "seem" right. You have a feel for your business, listen to it.
2. Do not allow the same person to sign checks and pay bills with no over sight. If it is necessary to have the same person do both, then someone needs to sign off the invoices before paid or have the checks prepared and someone else sign them. You can make a list of normal bills like rent, utilities, etc.; however, be careful that the list is one that someone can not change the amounts without being noticed. For instance, increase the rent payment because they are receiving a kickback from the landlord. Ideally the owner or general manager would always sign the checks.
3. Voided checks need to be accounted for; make sure they are actually voided.
4. Investigate unusal patterns; if for years you have always done a fair amount of cash business, and suddenly you are no longer depositing cash, something is probably wrong.
5. Keep blank checks locked up.
6. Especially when cash is involved, use accountability and dual control as much as possible.
7. Checks are harder to cash, but it can be done. Make sure that accounts are being paid that should be; and if they are showing paid, is that money accounted for in your bank account?
8. Reconcile bank accounts, credit cards, and your receivables as soon as possible when they arrive. The sooner a problem is discovered, the less loss you will have.
9. Have policies and procedures in place that make inappropriate behavior difficult to do; and that supports you in ridding yourself of employees who will not follow those procedures.
10. Act before you are a statistic. Whether it is cash, product, or time--you lose everytime someone steals from you. Protect yourself.
11. There are also tests that can be given to someone before they are hired that will predict their honesty. In senstive positions, this is a possibility.
12. Hire a professional to help you set up policies, procedures, and regular audits; or if it's too late, call for help immediately. Baker Street Bookkeeping, 865-384-7002; we make protecting your money elementary. www.bakerstreetbookkeeping.biz
