Workers that deal with money day in and day out will often get sticky fingers. Most of these workers barely make over minimum wage, so they often become tempted by all the money flowing through their hands. With this said, it is crucial that employers take the time to safe-proof their business from such fraudulent activities. Below, you will discover several tips on how to protect your business from employee theft.
Employee Code Of Conduct
A code of conduct is a necessity because it outlines the dos and donts of all employees. All corporations and most small businesses established a code of conduct early one. Upon hiring a new employee, they should be requested to read the code of conduct and sign an acknowledgment that they have read and understood it. When they sign the acknowledgment they will also agree to comply with the codes.
Once the document is completed, you will need to post a copy of it in the employee breakroom, so the employees can see it. When they see the code of conduct posted on the wall, they will definitely think about before they start to work.
Set Up Checks And Balances
Many employers will hire only one person to handle all of the financial aspects their business. This is a huge mistake because a multitasker will not have anyone to follow up after them and they will also be working alone the biggest portion of their workday. By hiring multiple workers to handle different aspects of the finances, there will be less room for error and temptation. The employees will work together to oversee the entire finance department, while also looking out for each other and monitoring what the others are doing.
If one of the workers decides to take any money without your authorization, they will most likely be caught one or more of the other employees. The matter will be brought to your attention before it escalates into a major financial loss for your business.
If you reimburse your employees for travel time, lodging, gas and meals, you should require them to turn in itemized receipts, along with the travel reimbursement request. While many of these bills will only be minor, the amount will add up to a significant amount over time. Employees, who have nothing to hide will be more than willing to provide you with itemized receipts. Believe it or not, this could save you thousands of dollars each year, if your employees do routine travel assignments.
Corporate Card Program
Instead of giving your employees a blank check for travel expenses, you should implement a corporate card program. By doing this you will be able to set value limits for specific expense categories. By setting limits on the amount that can be spent for specific expenses, employees will not have any opportunities to overspend or purchase items that are not listed under the approved expense categories.
Detailed Mileage Documents
While it may be difficult to believe, some employees will get a little greedy, when it comes to documenting their mileage. If you reimburse your employees for mileage that is utilized to travel from one facility or patient’s home to another, you can easily be taken advantage of without your knowledge. Instead of taking any risks, require the employees to document the physical addresses of the starting location and final destination. This will eliminate the risks of your business being charged for running personal errand mileage.
By filling in every loop hole that can lead to an employee theft, you will be able to operate a successful business. However, if you ignore these risk, you may be faced with a bankruptcy and it only takes one employee, with sticky fingers to ruin a business.