How to Identify and Combat Employee Theft

Combat Employee Theft - Complete Controller
Most small business owners cannot estimate employee theft happening secretly at their workplaces. There are numerous ways to detect the entire thing. You must be more alert and develop an eye to catch. Small-scale businesses are more susceptible as they have not instilled procedures to prevent these threats. If not controlled on time, employee thefts can result in considerable costs for the company. Employee theft is a termite that nibbles the base of your business, dragging it into huge and unseen losses. In the very first place, to overcome employee theft, you must identify the thief. The task can be tricky as it can be tough to pick up the culprit among thousands of working staff, especially when the thief is good at what he does. Here are the ways to be more precise about spotting the stealing bug roaming around in your workplace:

Signs to recognize employee theft

Luxurious lifestyle

Consider a situation where you observe a sudden change in the lifestyle of one of your working staff. Automatically that person becomes your prime suspect. It can be a sign to identify employee theft. You may observe the expensive purchases of new cell phones or maybe a car clearing the entire payment in advance. It can be focal points to lay your eyes upon without a measurable upsurge in the monthly wage; how can an average earning person afford such indulgences and that too with full payment.

Cultivates close and friendly connections with vendors

The person secretly stealing from your company will gradually become over-confident. The suspected employee will develop or may have developed an over-friendly relationship with the vendors and suppliers. The intentions of such a person can be deducting a certain amount of goods secretly, aiming to sell them quietly to make even more money.

Tampered bookkeeping record

Cubicle to Cloud virtual business Minor errors in financial records once or twice can be tolerated. But constant miscalculations are an indication that something is seriously fishy. Demand a serious inspection of the maintenance of the financial records.

Defensive attitude

Such employees will adopt a self-justifying attitude. They show poor performance, decreased working hours, and carelessness in handling business chores. Upon investigating the suddenly changed behavior, the employee will either come up with self-justification or try to highlight the mistakes of the other employees.

How to avoid employee theft

Once you discover the culprit disguised as your working staff, you can monitor these measures to avoid further employee theft in your office:

Demand an explanation

LastPass – Family or Org Password Vault After you get to know the pickpocket inside your firm, handle the matter with a calm breath. Call for a meeting with that employee, and try to discover the reason behind the scene. It is a probability that the guilty person is needy and was not courageous enough to approach you. Discussions always lead to better solutions.

Instill an anti-theft policy

As a boss, you must teach an anti-theft policy in your company strategy. The consequences of stealing from the office must be severe. The fear of being punished will help you avoid facing such threats in the future. Be strict where required, and be lenient when necessary.

Check your financial records personally

Being a lazy boy in checking and reviewing your financial accounting details can cost you a lot. Collect financial statements, transaction data, and every recorded credit facet weekly or at least monthly. Check each record prudently. Once you get habitual of checking company credit details on your own, your employees will become more alert and specific about their work. They will re-check the financial statements repeatedly before the end of the week to sidestep every possible inaccuracy.

Maintain a physical record of your financial statement

It is sensible to rely on technology or mobile application to a limit. But completely trusting the same is not legitimate. Imagine your software crashed, and you had not prepared a backup! If all your financial records, transaction data, and credit details disappear in a snap. What will be your next step?

ADP. Payroll – HR – Benefits Final words

Maintain a physical record of each of your accounting particulars. It will encourage you to play safer. You can capture a breath of relief, even if all your virtual record gets deleted. Ensure to keep the idea a secret, as it can back in getting your hand to the collar of an employee thief (if any). You can deduce the employee theft risk factor from your workplace in many other ways. Keep a regular check on your employees’ moves, attitude, working hours, and performance. Last but not least, don’t skip performing weekly audits. CorpNet. Start A New Business Now About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Complete Controller. America’s Bookkeeping Experts