One of the most popular chapters in Smart Business Stupid Business is Chapter 10 “Are Your Employees Ripping You Off?”
Here are three more strategies from this chapter. If you have anyone else working with you, then you can’t afford to miss this section!
Strategy #2: Maintain an Ethical Management Climate
There is a saying that the fish rots from the head down. That’s certainly true in a company. If the owners and manages are stealing from clients, vendors or each other, there will be a climate of thievery. Only it’s not Robin Hood and his merry men, it’s a bunch of thieves who want your money. Set the standard and make sure your managers follow suit.
Strategy #12: Do Not Assume Any Employee or Partner is Beyond Theft.
Things change. Even the nicest people may be subject to temptations and failures of character.
If you talk to most people who have survived embezzlement, they’ll probably tell you that the thief was the last person that they would have expected to have stolen from them.
Strategy #19: Keep Copies of All Reports From Your Bookkeeper.
In the hands of a smart operator, many accounting software programs allow changes without a good audit trail. That means the statement you get today might be changed, after the fact, by entries later. Hang on to every report your bookkeeper gives you. At some point, you may need to hand these over to your CPA to investigate a problem.
Additionally, get a copy of the check register each month and keep it. Is there a gap in check numbers? Ask to see the copies of the voided checks that fill in the gap.