Embezzlement is an act of illegal misuse of property or unlawfully seizing funds that have been handed over into your care but are actually owned by someone else. In several circumstances embezzlement by employee does not become public and the employee is fired without any reason and charges are not filed. Internal precautionary measures not only make embezzlement difficult but they could also make management aware to embezzlement when it takes place.
Embezzlement is often considered as a white collar crime or corporate crime. Embezzlement can be put on trial as civil fraud or criminal fraud. In the case of civil fraud, the employer can bring the lawsuit against the employee.
Protect your business from Embezzlement:
If you are a business owner, you should ideally focus on two factors that are involved in embezzlement such as:
- Pay attention on employees who have fiduciary accountabilities, such as those in your accounts payable, accounts receivable, payroll department, and those who merge bank statements. These are the people who are most likely to embezzle.
- Pay attention on cash transactions. Necessitate that all cash transactions be noted, as much as possible.
- The employees who steal are most probably those who are the most reliable. Do not ever think that the accountant who has been with your company for several years is truthful. Because this person has unhindered access to company information, cash, and records, he can do countless harm to your company.
Steve Sorensen, a CPA from Colorado has written several articles that are focused primarily on embezzlement. He says that the offense of embezzlement is often found in an employee- employer circumstance as the authority is given to the violator by the property owner. This does not essentially mean it has to be via employment, but any method of relationship where trust is given to somebody else to look after your property. Steve Sorensen Embezzlement advises his clients on ways that would help them to avoid embezzlement. Steve further adds that simple controls built into the accounting system can frequently foresee any such practices in your operation such as a built-in control system, if administered and audited frequently can help you prevent attempts of embezzlement.
A graduate of Finance from the University of Colorado Boulder, Steve Sorensen is fascinated in all subjects related to finance. From conducting market research, observing economic conditions, Steve Sorensen Embezzlement is diligent in his pursuit of knowledge, and ardent about sharing this with his clients.
As a financial advisor Steve makes sure that he is keeping himself up to date with the present trends in banking and economy. While he specializes in real estate, investments, banking, and taxation, he also provides advice on how corporations can avoid problems such as crippling taxation and employee embezzlement.
When Steve is not occupied with consulting work or writing content, he loves snowboarding in Vail, Breckenridge, and Aspen in his home state of Colorado. He also loves to watch movies during spare hours such as The Big Short and The Wolf of Wall Street.