Protecting Your Business from Embezzlement
According to the SBA, nearly a third of small business failures are due to fraud. In this Chamber U presentation, learn how to protect you business from employee fraud. Presenters are Doug and Polly White of Whitestone Partners, Robert Musick and Mark Colombell of Thompson McMullan, P.C. and Sharon Dabney-Wooldridge CEO of Kleane Kare.Major Take-Aways
- Create checks and balances- one employee should never have sole control of a company's finances and records.
- Don't ignore the red flags- no one knows your business better than you. If something seems off, do no ignore the warning signs.
- Be pro-active- the timeliness of a business owner's response to an internal fraud threat is one of the most important factors in minimizing a risk. don't let a small problem become a big problem.
- Know your remedies- remember that there is the potential for both civil and criminal remedies. Consult with your attorney about how to best protect your company's interests.
- Conduct background checks- choose criminal, sex offender and driving record checks if appropriate to your business.
- Check references- Don't just call the person referred by the job candidate. Get to the second level.
- Call former employers- but talk to the job candidate's supervisor- in smaller companies that means the president ofthe firm. Look up the phone number yourself.
- Check all claims makde by the job candidate regadring education and licenses- and make sure that the institutions are accredited.