Conducting regular external accounts payable audits is a good way for businesses to quickly identify and minimize the effects of embezzlement, as well as to dissuade employees from potentially stealing from the company in the future, the Burlington Free Press explains.
Another action that can be taken in order to reduce the likelihood of embezzlement involves dividing financial responsibilities between two or more workers, rather than trusting a single employee to do the books. Ideally, accounts payable and accounts receivable functions should be split between two people, the source notes, and two signatures should be required to authorize checks or payments that exceed a certain amount.
As a result of implementing these measures, misappropriation of company funds may be identified more quickly, and the potential for loss decreased.
According to the Billings Gazette, a former teller at the Montana Health Federal Credit Union recently admitted to embezzling from the company in order to pay for living expenses, vacations and overdrafts. Indiscrepancies were first noted after an audit of the employee's teller drawer found it to be short by thousands of dollars.