Whether it’s an employee making an honest mistake, a bad accountant being careless, or some sketchy bookkeeping, embezzlement happens.
Unfortunately, some managers and business owners may not know how to report it when they believe someone may be embezzling from their company. Take it from us: you should always report it and never feel embarrassed that someone embezzled from you. It does not reflect on you as a business owner, and with our help, it can be dealt with, resolved, and steps can be taken to prevent it in the future.
Embezzlement is defined as the theft or misappropriation of funds placed in one’s trust or belonging to one’s employer. It can happen anywhere, anytime, in any amount – and it can hurt a business’s finances as much as it’s reputation. Embezzlement is not just something that can happen within your accounting department, it can be anyone from a register attendant to the highest positions within a company. The FBI Financial Crimes Report to the Public has estimated that financial crimes like embezzlement actually account for thirty to fifty percent of all business failures. It’s important to handle it intelligently, and swiftly.
It’s important to keep in mind that if you notice these signs, it doesn’t definitively mean someone is embezzling money from you. But, you should tread with caution and take action if you suspect suspicious activity.
So, what should you do if you suspect someone is, in fact, embezzling from you?
There are some things you should and should not do when it comes time to approach a suspected embezzlement situation. You may be feeling incredibly angry or scared if you suspect embezzlement, but it’s very important to keep your emotions in check and take the right steps.
DO call the professionals. Tax Relief USA is a team of experienced professionals who can help you recover finances, and will work with you every step of the way. We take a dedicated approach to solving the issue at hand quickly and without any judgment.
DO alert your board of trustees and any advisors to the business’s finances outside of your employees.
DO keep a record of any interactions you’ve had of the suspicious activity you have noticed.
DO conduct a thorough, private audit with a finance or tax professional
DO NOT alert any staff of your suspicions.
DO NOT approach the suspected individual or vendor before contacting a professional
DO NOT make any changes to logins or credentials for banking and other financial information.
Don’t attempt to handle this internally first. Always contact a finance or tax professional, and your lawyer if deemed necessary. Back up your electronic data, get records ready to share with the lawyers and auditors, consult with professionals.
Make necessary changes and improvements to your practices like increased security, improved hiring practices, record keeping and knowing what signs to look for to avoid this in the future.
For tax loss and recovery, Tax Relief USA can be that resource to help you get out of that hole. Call us anytime, and our highly trained and knowledgeable team can help you through the steps of tax recovery and relief.