When conducting business, various dynamics happen almost every hour. The goal of growing a company, and ensuring profits are made, will be at the top of everyone’s agenda. After assembling the right team, you can slowly, yet surely, reach that goal alongside those you work with.
Unfortunately, some aspects of that working dynamic are not as viable. Sometimes, fraud may permeate said company structure and put operations in peril. Despite its fictional occurrences in episodic TV series, embezzlement is more common than you’d think. Consider the following if you wish to stop company embezzlement in its tracks.
1. Vetting Colleagues
You must commit to doing your due diligence if you are in a managerial or executive-level position. While every colleague you work with may result in an ideal partnership, it could still be threatened. Sometimes, those you consider to be colleagues could be at the forefront of committing company fraud.
That is why it is always recommended to vet your employees where possible. Before starting their careers, you should check their references and ask about operations. Down the line, should they feel comfortable enough to do so, a performance review may be necessary. This ensures that a watchful eye is being kept throughout the office!
2. Restricting Access
Largescale companies will eventually see growth occurring before you know it. Of course, this will eventually lead to your team expanding its roster. The more the business grows, the more people will be needed to maintain operations. After growing your team, you will also be in a position where you should organize the chain of command.
Certain workers will need access to certain sensitive company materials. In this regard, ensure that only those granted access can interact with these materials. Should fraud occur, you can single out those who have access and those who don’t. It may pan out to be a false alarm, but it allows you to avoid possible fraudulent activity.
3. Check Your Policies
One of the most important aspects of any company’s structure is policies. There will be guidelines, rules, and regulations to ensure illegal activity does not occur. If these are not followed to the letter, you may see a rise in fraud. The worst possible result of outdated policies will be embezzlement.
So, make sure that your employees know what your policies are in key areas. For example, if fraud could put your company in disarray, review this with your team. The more they stay informed about established rules, the better off everyone will be. Then, you mitigate the chances of embezzlement occurring overall.
4. Insurance
Insurance can be used to protect your assets, in very beneficial to your company. Crime insurance, for example, is one of the best ways to be proactive. Speak to several companies specializing in this area before proceeding with a product.
5. Checking Your Accounting
The workers you put in charge of your company’s accounting will be crucial. These professionals will be in charge of overseeing various financial details. These details could range from minor bookkeeping duties to large company audits. You may want to ensure your accountants are kept up-to-date concerning fraud prevention.
That is because discrepancies in accounting could manifest without your knowledge. Should these discrepancies grow, embezzlement may be happening in the business. Ensure your accountants provide daily or monthly updates on where profits stand. That way, you will be kept informed about some of the key details within the business.
6. Third-Party Assistance
Hiring outside assistance can also be a great benefit when stopping embezzlement. For example, there could be corporate investigations specialists who could assist in a fraud-based investigation. Make sure that you inform these parties about what you consider to be suspicious behaviour. Then, you will be set moving forward.
7. Scheduling
Your employees will eventually come to you with a notice of their vacation time. It is in your best interest to know these well beforehand and make a note of it. It could be a red flag if you find a worker in the company who is not supposed to be there. Enforce vacation time where and when it is necessary.
8. Remain Informed
As mentioned, your policies are one of the most important tools to use when stopping embezzlement. Always keep yourself informed to avoid this type of fraud before it occurs. Stopping embezzlement is possible, especially when you remain ahead of the curve!
