4 steps to prevent in-house fraud & theft — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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4 steps to prevent in-house fraud & theft

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in HR Management,Human Resources

There are plenty of ways for organizations to lose money—bad business decisions, tough competition, fickle markets. But HR must watch out for one of the most unexpected and insidious fiscal perils: employees who steal.

Businesses in the U.S. lose an average of 6% of revenues to employee fraud and theft each year, and smaller businesses are even more vulnerable. More than two-thirds of all workplace thievery involves some form of financial fraud.

These broad measures can help limit the risk of internal theft and fraud:

1. Spread responsibility for major accounting and financial transactions so no single employee controls them.

2. Catalog all processes with a potential for being manipulated, including accounts payable and receivable, payroll tax deposits and deposits to benefits accounts. You should establish ironclad procedures for controlling critical processes, including redundant oversight.

3. Keep a list of individuals with access to potentially risky processes, as well as related computer systems.

4. Check incoming shipments of equipment, supplies and merchandise against purchase orders and invoices.

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