Most entrepreneurs go out of their way to ensure their wellbeing of their employees. This implies paying them their salaries on time for responsibilities they carry out. You probably do the same thing when comes to running your business. After all, they are your most important asset. However, at the end of the day, they are human beings. They sometimes become very greedy and are willing to anything to earn a fast buck.
In some cases, they even resort to frauds, collusion, and embezzlements. Such nefarious activities can have an adverse effect on the financial condition of your organization. This the reason why you need to take the necessary steps to them from occurring.
Steve Sorensen Embezzlement How to safeguard your business against collusion and embezzlement?
Research shows that frauds, collusion, and embezzlement can have a devastating effect on business operations Steve Sorenson is a financial and investment strategist in the USA. He guides and counsels’ businesses on how they can prevent fraud and embezzlement by employees. Experts from the Steve Sorensen Embezzlement team say it is difficult for organizations to overcome such revenue losses. Those enterprises who don’t have the adequate cash reserves may have to file for bankruptcy. They have no other alternative option except for this course of action. This is because of the consumers and investors lost confidence in such businesses. In the process, the entrepreneurs who run such establishments ruin their reputation in the market. Moreover, they have to suffer this disgrace for no fault of their own. The actions of a few nefarious employees are responsible for such an outcome.
These professionals explain the entrepreneurs need to be vigilant when it comes tackling employee theft and embezzlement. The last thing they want to incur losses resulting from the actions of a few corrupt individuals. They shouldn’t hesitate to terminate the employment of such people and seek legal action against them. The financial specialists point out that it is important for them to take the following 3 important steps:
- Keeping track of all cash transaction and reconciling bank statements
Entrepreneurs should make it a point to keep track of all cash transactions. They should deposit the money they receive from their clients in their bank account immediately. They should also insist on seeing the receipts if they allot this task to members of their staff. Moreover, they sit with their cashier and reconcile the bank statements every month. This goes a long way in identifying financial irregularities.
- Delegate financial tasks to different employees
Such owners should ensure individuals in their financial departments perform separate tasks. For example, an employee responsible for disbursing paying by writing checks shouldn’t reconcile the bank statements. Again, all checks for meeting petty cash expenses should have the signature of two responsible individuals.
- Proper evidence should accompany documents for reimbursement of travel expenses
Such proprietors may have to send their employees to different places from time-to-time to carry certain tasks. In the process of discharging their responsibilities in such areas, they may have to incur certain expenses. They should only reimburse such staff members when they attract proper paper evidence with their vouchers.
Experts from Steve Sorensen Embezzlement team explain that entrepreneurs may have come across the saying ‘better safe than sorry’. This is true in the case of embezzlements, collusions and employee thefts. After all, legal proceedings against the culprits can be very expensive.
