If you wanted to hide the fact that you were taking money from a company, would you keep the books in perfect order, with everything balanced and accounted for? Probably not? Neither did Cheril Jean Edwards. The owners finally caught on when the overdraft fees started. The estimate is more than $32,000 was taken over two years.
Leaving the books a mess is a convenient cover for someone stealing. They know the owners aren’t “numbers people.” They also know that no one is reviewing the financials because there aren’t any. Many times small companies that are self-funded don’t get an outside audit because it’s expensive, and no one is requiring that they do so. Public companies or companies with bank obligations are audited, and although that’s no guarantee someone won’t steal, the Association of Certified Fraud Examiners has found that small businesses are more vulnerable.
Make sure you see financials monthly from your bookkeeper, and have the bank statements sent to your house. Review them and ask questions. Perception of oversight is important, and if you don’t understand the information, why are you working so hard to earn the money?
Remember, it’s not “Will my employees steal from me,” it’s “How much will I lose before I catch them?”
Maple Grove Woman Charged with Theft from Brooklyn Park Business – Maple Grove, MN Patch.
