Jan Quintrall of Spokane’s Better Business Bureau wrote an article in the Spokesman Review a few years ago regarding embezzlement signs. Here they are:
1) The person that reconciles bank accounts cannot be the one who writes the checks.
2) The person who opens the mail, receiving checks or processing the credit card batches should not be the person who makes the deposits
3) Do spot audits with your CPA. Honest employees won’t object.
4) Do background credits check on any employee who will be handling money or products prior to hiring.
5) Cross-train and move duties around every once in a while.
A final note: it’s almost always the “trusted, long-term employee” who embezzles. Remember, they know your system and if procedures aren’t air-tight, they know how to circumvent them.
Next week’s blog: 8 Key Patterns of Successful CEO’s: