Steve Sorensen Embezzlement Presents a Note of the Causes For Employee Embezzlement?  

The everyday pressure in running a business is massive, particularly in today’s economy when every dollar counts. Regrettably, entrepreneurs spend most of their day running their business, rather than supervising their staff members who manage the business. In this kind of atmosphere, embezzlement can flourish.

According to industry statistics, roughly forty percent (40%) of companies have been or will become the victim of employee embezzlement. Recent studies indicate that employee embezzlement in a business has become so unbridled that it accounts for a majority of everyday business losses suffered by entrepreneurs. The average amount of employee embezzlement from a business is approximately $105,000 per incident, which is an astounding number. Steve Sorensen Embezzlement offer guidance to companies on legally lowering taxes, clamping down on employee embezzlement, and developing overall monetary structure.

Listed below are signs employee embezzlement may be taking place:

  • You fail to obtain monetary information in a timely manner
  • Employees are opposed to any kind of change in the present accounting system
  • You have large numbers of inexplicable accounting adjustments
  • Your cash deposits have declined
  • Your collections have slowed
  • A staff member dislikes your lifestyle or income
  • An employee refuses to take a vacation
  • An employee always works overdue and/or takes work home
  • An employee treats office procedures as an aggravation
  • You have employees who always seem to have cash on hand, and/or appear to live above their means

It is tremendously rare that an worker is really caught embezzling funds by direct observation. Most embezzlement cases are perceived based upon preliminary circumstantial evidence, such as through a random audit or an inconsistent practice financial report. If you think that employee embezzlement has taken place, one of the primary things you should do is perform an investigation with an attorney and CPA like Steve Sorensen Embezzlement in private, and proceed with great discretion. The reason for this is double: (1) to avoid revelation to defamation claims, and (2) to avoid untimely disclosure of information to the wrong party. At the early phase of an employee embezzlement claim, and depending on the degree of the theft, you may wish to contact their insurance agent in order to settle on whether you have employee deceit coverage. Most insurance policies have strict time necessities for reporting an employee fraudulence claim. For substantial losses, a CPA should aid the owner of a business in determining whether insurance coverage may subsist, and how much coverage may be obtainable.

In definite ways, investigating suspected embezzlement is akin to investigating other employee misconduct. The manner and scope of the investigation will depend on part on the complexity and size of the theft. Certainly, as with any investigation, the employer’s abilities and rights to investigate the circumstances and facts surrounding the incident are intertwined with the myriad of protections and rights conferred upon employees by state and federal law.

Employee embezzlement is rampant in today’s market place. Nevertheless, with a little precaution, the economic hardship of employee embezzlement can be evaded. In addition, with proper control and oversight, proper employee screening, as well as sensible financial control, a destructive financial loss can be avoided.