Practice Some Preventative Medicine
- Unusual employee behavior.
- Irregularities and inconsistencies in monthly reports.
- Employees experiencing personal financial pressures, such as calls from creditors at work, garnishments, missed child-support payments, or alimony.
- Employees who appear to be living a lifestyle beyond their means.
- Negative events in an employee’s life, such as divorce, substance abuse, or significant investment losses.
- Segregate duties in the billing, collection, and bill payment functions.
- Cross train employees and require vacations of at least one week of consecutive days each year.
- Make sure employees are fully aware of internal controls, their purpose and their value. Philosophically, the message to send is, “we trust you, but we will verify.”
- Consider an employee fidelity bond, which protects you if an employee embezzles from you or steals something from your office. Ask whether you can purchase a "blanket bond," which covers everyone in the office and will preclude you from having to update the names on the policy every time someone new comes on board.