5 Signs You May Have Employee Accounting Fraud
As a business owner, you have to be able to trust the people who are working for you. Unfortunately, sometimes the wrong kind of people are hired and businesses deal with the consequences. One of those most common types of theft businesses experience are committed by employees. Our accounting firms in Mid-Missouri is here to give you a few signs to be on the lookout for when it comes to employee accounting fraud. This matter is no joke and if you feel your business could benefit from an audit, call Wilson Toellner CPA.
Cash Not Balancing Up
No matter what sort of tender you use in your business, whether it be cash or credit - check your balances often. If you start to notice your cash being off by a substantial amount, an employee could be pocketing the missing amount.
An Employee on Payroll That Doesn't Exist
Have you ever heard of a "ghost employee"? This term is used to describe an employee who was made up, so another dishonest employee could collect extra funds from a business illegally.
False Timesheets Submitted
If your employee is turning in time sheets that have abnormal hour amounts listed, way over the average - it is possible that they are inflating their hours to get paid for the time they didn't work.
Shortage on Inventory
Has some inventory gone missing recently? Install security cameras and take whatever other security measures you deem necessary to protect your business. It is possible one of your employees could be stealing the missing inventory.
Too Many Purchases on The Company Dime
How often do you run business credit reports on your employees' internal expenses? Do you ever see abnormal charges that don't make sense professionally? If so, you could have an employee who is taking advantage of the company credit card and using company money for the wrong things. Combat this issue and create a clear spending policy and distribute it to every employee so it is known. Have employees submit weekly credit reports of all charges they ran on company credit cards. The more diligent you are, the better chances you have of protecting company money. Those who are honest should understand and those who aren't will know you mean business.
5 Signs You May Have Employee Accounting Fraud
Cash Not Balancing Up
No matter what sort of tender you use in your business, whether it be cash or credit - check your balances often. If you start to notice your cash being off by a substantial amount, an employee could be pocketing the missing amount.
An Employee on Payroll That Doesn't Exist
Have you ever heard of a "ghost employee"? This term is used to describe an employee who was made up, so another dishonest employee could collect extra funds from a business illegally.
False Timesheets Submitted
If your employee is turning in time sheets that have abnormal hour amounts listed, way over the average - it is possible that they are inflating their hours to get paid for the time they didn't work.
Shortage on Inventory
Has some inventory gone missing recently? Install security cameras and take whatever other security measures you deem necessary to protect your business. It is possible one of your employees could be stealing the missing inventory.
Too Many Purchases on The Company Dime
How often do you run business credit reports on your employees' internal expenses? Do you ever see abnormal charges that don't make sense professionally? If so, you could have an employee who is taking advantage of the company credit card and using company money for the wrong things. Combat this issue and create a clear spending policy and distribute it to every employee so it is known. Have employees submit weekly credit reports of all charges they ran on company credit cards. The more diligent you are, the better chances you have of protecting company money. Those who are honest should understand and those who aren't will know you mean business.
Combat Accounting Mishaps with Wilson Toellner CPA
We use accounting and auditing skills to provide an analysis of financial records in conjunction with dispute resolutions, as well as fraud and theft investigation. Our damage measurement methods can determine the extent of financial loss and illegal accounting practices. For more information on this service or to get in touch with one of our accounting experts in Central Missouri, call Wilson Toellner CPA. Our phone numbers to each of our four conveniently located firms are listed below.
For tax preparation services you can count on, call:
Sedalia -- (660) 827-4990
Marshall -- (660) 886-6815
Camdenton -- (573) 346-6822
Lake Ozark -- (573) 964-5739
Check out our website: www.WTCPA.com
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