According to the Jacksonville Financial News & Daily Record, embezzlement cases are more prevalent in recent months "as people in trusted positions improperly stepped over the bottom line." Small businesses and non-profits are particularly hard hit, according to the article, written by Joe Wilhelm, Jr. The article provides some tips on how to avoid an embezzlement, which include:
• Related duties should be assigned to different people. Have a system of checks and balances. Have more than one person sign off on company payments.
• Scrutinize bank statements and reconcile bank statements every month.
• Look at original documents before signing checks or authorizing payment.
• Lock down and check blank checks and signature stamps.
• Secure fidelity bonds and insurance for all accounting and key personnel.
• Know your employees, watch for changes in behavior. Look for trouble signs, such as changes in lifestyle or substance abuse.
• Make sure employees take vacations so they don’t maintain full-time control of any organization business.
• Change computer passwords regularly.
• Perform thorough background checks before hiring any employee.
Read the whole article here.
Of course, The Small Business Fraud Prevention ToolKit is also helpful.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment