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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.
Next Steps
Contact a qualified business attorney to help you
address the finances vital to your business.
(e.g., Chicago, IL or 60611)

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