Avoid Employee Theft

I cannot tell you how many times I come across a client who has made their business vulnerable to employee theft. This can happen when a business gives a company credit card to employees to run errands like Office Depot, a hardware store, as well as business travel including bridge tolls and parking, without receipts being properly submitted back to the employer. These go unrecorded for a while and then the business owner forgets what the transaction was specifically for and cannot locate the original receipt. Although most employers trust that their employees would never steal from them…it happens. You can reduce your chances of employee theft by implementing an expense reimbursement plan. First the employee makes the original purchase. Then the receipts would have to be submitted through an expense reimbursement form, coded properly into your accounting system and approved by the business owner in order to be reimbursed. You will then have accurate records of expenses including receipts (especially if you were ever audited) and you also limit the chances of possible employee theft.