Embezzlement is Far Too Common

Small business owners make it so easy for embezzlers they may as well put out a welcome mat for them. "Steal from me," they may as well yell out into a crowd, "I won't notice!" Isn't it nice that people still trust people?

Here's just one example:

http://www.sacbee.com/static/weblogs/crime/archives/embezzlement/

These stories pop up every day, everywhere. There's certainly no shortage of people looking for these opportunities, and no shortage of opportunities.

If you have a business and trust a bookkeeper to keep track of everything for you, all I can say is, don't. Don't rely on one person, even if you think they're fabulous. Even if you've known them for years. All the bookkeepers and accountants who have embezzled were also trusted and well-liked -- that's why they had access.

If you have someone doing your books, check your bank statements. Open them yourself, look at them. Look at your cancelled checks. If you don't get cancelled checks back from the bank, look at your bank account online and review the checks. Writing checks and paying them to themselves is the most popular way for embezzlers to get your money out of your business and into their pockets.

Ask questions. If expenses seem high, ask for documentation. Pay attention to what's going on with your business.

If you have only one person in your office and no one else, arrange for an independent review every so often. These things have been allowed to happen because no one else is looking, no one's paying attention, and the embezzler has no obstacles in their way. The Association of Certified Fraud Examiners (www.acfe.com) has resources and you can also locate a Certified Fraud Examiner if the situation warrants it.

The reasons people embezzle aren't important. Whether it's an entitlement issue or someone thinks they need the money that badly is irrelevant. What matters is that you keep them from taking what's yours. And if you do find out you've been the victim of an embezzler, prosecute them. Too many times an embezzler will leave one position once they've been discovered and get hired at another company, and repeat their activities. Check out the people you hire.

I really don't like embezzlers.