Preventing Employee Theft

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.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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