I recently read an article in our local paper that details a pretty standard embezzlement case. In this case (Wilsonville bookkeeper gets theft conviction), the bookkeeper charged at least $17,000 of personal charges to a company credit card. She also wrote convenience checks off the credit card to pay personal bills. She is believed to have stolen at least $30,000.
When you don’t have any internal controls in place and you give one person access to everything, it’s easy for this to happen. What are you doing to ensure your cash and credit is secure? At a minimum, you should ensure bank and credit card accounts are reconciled monthly, preferably not by the person paying the bills. The owner should also regularly review bank and credit card statements.
Read more internal controls tips on this post: Internal Controls, Protect Your Business From Embezzlement