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Tips for preventing employee embezzlement

| Jan 9, 2018 | Embezzlement |

Employers in Minnesota have to keep an eye on their finances to ensure crimes like embezzlement does not occur. This may seem rather easy, but an employee who wants to steal will often find a way. That is why employers may want to follow these tips to help prevent employee embezzlement.

Entrepreneur suggests employers do not allow one employee to handle all finances. Checks are needed to help prevent embezzlement. Separating duties so an employee is always checking another employee’s work can help problems come to light before they turn into major issues and keep employees accountable for their actions. 

Another suggestion is to do careful reviews of statements. Reviews should be done monthly so any issues are caught right away. Plus, employees who know accounts will be checked often are less likely to risk stealing.

SCORE suggests employers should install security checks to help make it difficult to embezzle. Every financial transaction should be tracked and monitored by management. Employers should manage receipts carefully and keep an eye on accounts to watch for suspicious activity. 

Finally, it should be easy for employees to report any activity that is questionable. Employers should have a clear policy on how reports are investigated to ensure everyone is treated fairly.

Embezzlement can cost a business a lot of money. It is especially damaging to a small business. So business owners must stay on top of finances to ensure issues do not occur and if they do that they are caught as soon as possible to minimize damage.