Small businesses are particularly vulnerable to fraud and employee embezzlement: they lack the resources and business owners trust too much and too easily.
Employee thieves are not your stereotypical criminal. 90% of them are first-time offenders. They become thieves because they are given an opportunity.
There are lots of way to prevent small business fraud and employee embezzlement. One way is to implement a paperless and automated credit card expense auditing system, like ReceiptBank, then:
- Create a company policy requiring employees to upload itemized receipts.
- The system will recommend the appropriate category to record the transaction to and will also let you know when there’s a credit card charge without a receipt.
- Perform surprise audits to ensure company funds are not being used inappropriately.
A La CARTE Solutions is an advisory firm providing outsourced accounting services. If you want to learn more about how to prevent fraud and employee embezzlement in your small business, give us a call.