While no business owner wants to believe that their employees are capable of stealing from them, the truth is that employee theft is one of the biggest causes of loss in small businesses. Nationwide, business owners in all sectors suffer from theft, resulting in billions lost each year. Even if you trust your employees, implementing theft monitoring and prevention methods in your business can protect your bottom line. As we explore how to accomplish this, ensure your operation is protected with a Glen Rock Commercial Package Policy to mitigate loss as a result of crime.
Look out for gatekeeper fraud.
Especially in a small business, you likely have one person who has complete access to bank statements, deposits, account management, and accounting data. However, implementing checks and balances and requiring at least two people to review financial information can pinpoint fraudulent behavior and prevent crime from going unnoticed.
Expanding upon our first point even further, controls need to be implemented when it comes to finances. Require two signatures on checks. Do not allow one person to have control of any function from start to finish. Do not let the person who has responsibility for accounts payable reconcile the bank statements. Small business owners should consider having bank statements sent to their homes rather than the business so they can review them before anyone has a chance to alter them, explains Law 360.
Let your employees know that you take fraud and theft seriously. Indicate how these types of actions will be handled and punished in order to set the expectation from the start. While you might not want to risk your employees thinking you don’t trust them, a potential criminal is seeking out blind trust by their employers.
Encourage employees to speak up.
An open-door policy is always beneficial, especially in regards to theft. Encourage your employees to let you know if they see any suspicious activity.
About David G. Sayles
Contact our experts at David G. Sayles Insurance Services for assistance in navigating your New Jersey CPP Insurance program. Our commitment to your success and focus on customer service has allowed us to serve business owners like you for the last 35 years. For more information, contact us today at (855) 977-1842.