Increasing Security: How To Avoid An Unnecessary Loss Of Money
By Gabriel Adams
While a large company can bounce back from losing millions of dollars, this type of mistake for a smaller business could prove too detrimental to recover. One of the best things to do to in regards to protecting the interests of a company is to increase the amount of security pertaining to the handling of money. For starters, no single worker should have sole control over the financial transactions from start to finish. Duties of the company should be kept separate. For example, the person who writes the company checks shouldn't be the same person who signs them as well.

The same goes for other responsibilities about the work setting. The employee who opens the mail shouldn't have the duty of recording all of the monetary gains and losses. If responsibilities are divided among a pool of workers, the chances of one person stealing from the company is minimized because of an in-house system of checks and balances.

When an employer gives an individual the chance to embezzle funds and then get rid of any evidence of the act, they have often bestowed upon them too much power and position within the company. Without anyone watching or checking up on their actions, they are given the opportunity to keep unopened bank deposits and sign for undetermined amounts of money with room for covering up their deeds. Employers and business owners should review all of their unopened bank statements, canceled checks, endorsements, and all signed checks.

Knowing the signs of fraud is also a good way to prevent it from happening or from getting worse. Business owners and executives should get in the habit of checking on suppliers and business ties they are unfamiliar with. They should investigate checks that seem larger than they

should be. A keen eye can detect forged signatures, but comparison checking wouldn't hurt every now and then. If checks are missing or check numbers are out of order, a red flag should rise. Checks should also match the name on the register, and when made out to a third party, company endorsers should be examined.

Also, company checks are quite important. They should be closely guarded and access to them should be limited. Checks should also be pre-numbered and kept in a secure location that only a select few can reach. And although it may sound funny (and some forget), a very important rule regarding tightening financial security is to never sign a blank check.

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