Employee embezzlement is a real worry. More than 20 percent of businesses fall victim to fraud. Segregation of duties and proactive reconciliations are key in the prevention of fraud committed by loan-wolf employees.
The smaller the size of the company, the bigger the damage the thefts cause to the business, according to the Association of Certified Fraud Examiners. In a comprehensive study covering almost 1,000 workplaces nationwide, they noted that on average, small businesses incurred losses of $200,000, higher than that for large-sized corporations.
Small-business owners are often unable to detect fraudulent activity for months or many years in some cases. Some even fail to take simple measures to safeguard themselves against embezzlement. At Reckenen, we strive to minimize fraud with our team of bookkeepers, managers and a controller following rigorous procedural guidelines. We implement procedures to minimize risk of fraud. We compare and review canceled checks, study audit trail reports, lock down past periods and watch for warning signs.
All Reckenen employees are thoroughly screened and background checked, and because they work in teams with segregation of duties, fraud can be prevented and/or detected in a timely manner.