Entrepreneurs need to stay alert as to the possible threat of employee theft, which can hurt workplace morale and directly affect your bottom line.
The cost of employee theft to American small business annually is $50 billion.
Employee theft can take many forms, including intangible property (employee and customer data, credit card information, trade secrets) as well as cash and inventory.
Fraud is also a major concern and can take place through employee collusion with outsiders like vendors, delivery personnel, and customers. False reporting can take place in expense account abuse, mileage, travel, and time card reports, as well as the creation of fake employees and vendors.
Protect your business from temptation by facing it early and directly. Create a staff culture of trust and accountability, where employees can step forward to help you protect your business. Make it clear that you have a zero tolerance policy toward theft. A CPA can help you implement controls to protect your business from employee theft.