Embezzlement Warning Signs
Employee theft is something that no business owner wants to experience. Unfortunately, the culprit is often a trusted employee who has never complained about working overtime and without vacations. If you notice a combination of the following warning signs, it will be well worth your while to start investigating.
- There is an unusual drop in your profits.
- Your records are disorganized.
- There are unexplained changes in your accounting records.
- There are unusually large or numerous credits to a particular customer.
- An employee works late, on the weekends and refuses to take vacations.
- An employee's standard of living changes to a degree that is inexplicable based on her salary.
- Documents are missing.
- Bank deposits delayed.
- Customers are complaining about having already paid a bill.
- There are too many increases in past due accounts receivable.
- Check amounts are altered.
- Duplicate payments are made.
- Bank reconciliations have too many outstanding checks.
- Too many payments are being made to individuals with the same name or address.
- Vendors' addresses are the same as an employee's address.
- Bank reconciliations are late.
- Accounts receivable and payable don't balance.
- The petty cash fund is disappearing.