3 Signs That Someone Could Be Embezzling From Your Business

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3 Signs That Someone Could Be Embezzling From Your Business

As a business owner, you probably already know that watching out for employee theft is important. Of course, putting up security cameras, keeping an eye on your cash registers, and watching the products on your shelves and in your stock room can help, but these things can't help with all types of theft. For example, some types of business theft come in a much more calculated way: embezzlement. This can be crippling for your business, and many people who embezzle from the companies that they work for do so in a way that can be hard to catch. These are a few potential signs that this might be going on within your business.

1. You're Going Through Financial Hard Times for Seemingly No Reason

Even the best of businesses can sometimes experience slow times, and financial issues can happen. However, if your business is going through financial hard times for seemingly no reason, something could be amiss. For example, if it seems like business is booming and that you haven't made any major changes that should have driven operating costs up significantly but money just seems tight, then there could be something amiss, even if you can't figure out what it is by looking at your books.

2. You Catch a Lot of "Mistakes"

Everyone makes mistakes every now and then, even when it comes to something as important as dealing with money. However, if you have found that you are constantly finding one mistake or another when looking over your bookkeeping and accounting records, then it could be a sign that you need to do some investigating. Of course, it could be a sign that your accountant or bookkeeper isn't fully experienced or is being careless, but it can also be a sign of something much more sinister. Either way, it's important to get to the bottom of the problem.

3. Expenses Seem to Be Very High

It's easy to get sticker shock when you look at the expenses that your business has been incurring. However, if the expenses that are listed for your business seem much higher than normal or much higher than what is reasonable, particularly if there is no explanation for things being this way, then someone could be trying to hide money that they are embezzling from your business.

If you notice any of these signs of potential embezzlement in your business, it is important to take action immediately. Luckily, there are financial crimes contractors and forensic accountants out there who can help. Contact a company like Burns Risk Management today.

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Understanding Accounting From A Personal Perspective I have always loved going through and taking care of things around the house, but when I started analyzing my finances, I realized that I had a lot of room to grow. I was concerned about planning for my future, so I met with an accountant to talk about what I was doing right and what needed to change. It was really difficult to make those changes at the beginning, but by the time I practiced the new habits for awhile, things were a lot better. Check out this blog for more information about accounting from a personal perspective every day.