Employee embezzlement nearly ruins small business

If it weren’t for an accounts payable audit that ultimately revealed evidence of embezzlement, business owner Ron George may never have known why money had gone missing from his company’s accounts or why his credit history was poor. Fortunately, the investigation allowed him to confront the issue and determine which worker has been conducting the illegal activity.

According to Monroe News, George runs a mechanical design and consulting business in Monroe, Michigan, and six years ago he hired Kara Krimmel to help out with bookkeeping processes as well as other administrative tasks for his small firm. However, soon after starting at the company, Krimmel began stealing money from its accounts, mainly through inflating her paychecks with unauthorized extra funds. In addition, George revealed that she had diverted money from property tax payments given to him, and altering checks he had written to her and her husband for lawn services, the news source reports.

George became aware of the financial misappropriation when he received an invoice from a payroll company that he had not hired. He then began looking into accounting records, and ultimately decided to conduct an accounts payable audit to determine the extent of the embezzlement, the source writes. George estimates that Krimmel stole more than $500,000 from his business over four years. Fortunately, he has been able to get his company back on its feet following the setback. 

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