Are Your Employees Stealing? – Employees stealing from their employer happens more common than you think.
Recently, I met the owners of a small company to sign a Listing Agreement to sell their company. While talking about their business, one of the owners said, “After the embezzlement, we started to struggle.” The owners had a “full-charge” bookkeeper that stole $100,000 from the business. She had signatory rights to sign checks for their business and draw down the company’s line of credit. In nine months, she stole the money, and the owners had no idea that it happened. They found out from another employee who brought the issue to their attention. The owners said several times during the conversation, “We trusted her!”
Are your Employees Stealing?
The prosecuted bookkeeper never went to jail. She got five years’ probation and was ordered to pay restitution. So far, over the past two years, she repaid the company less than $5,000. She has paid nothing in the past six months because she is unemployed. I know, it is hard to believe that a bookkeeper convicted of embezzling $100,000 from her previous employer had a hard time finding work, right?
Employees stealing occurs because the employers let it happen.
If you give your employees the opportunity to steal from your company, as these owners did, they will do it EVERY TIME. There are simple, straightforward internal controls that can stop this type of problem from occurring. If you don’t have those internal controls in place, it will be very costly to your business.
Then, it will be you who is telling a similar story, which will start with: “After the embezzlement, our company started to struggle!”
My name is Robert Curry, and I am an Author, CEO Coach, Keynote Speaker, and Turnaround Specialist. Over the past 20 years, I have worked with more than 70 companies taking their businesses from Loses to Profits.
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