Mitigating Embezzlement

woman stealing money


Since I touched on this subject last week I wanted to give some  some tips to help mitagate embezzlement:

 Deposit daily and reconcile monthly: loose cash is too tempting, and reconciling the bank statement each month helps catch any irregularities early.

Keep track of petty cash. The money in a cash drawer can prove to be too tempting for some employees. Require that all petty cash transactions have a petty cash slip or log to support them, and require two signatures on petty cash refill checks.

 Give employees separate financial duties otherwise known as “checks and balances”: For example, the employee who writes the checks should not be the employee who reconciles the bank statement or cashes the check.

 Manage by walking around: let employees know that you are keeping an eye on things around the company. Do not go searching through employee lockers or personal items; just be watchful for changes or unusual activity.

 Make sure that employee travel is supported by appropriate paperwork.