Conduct surprise inventories. Separate bookkeeping functions . Misapplication of payments can lead to embezzlement. Do not let the same person who processes checks also manage the accounts receivable records. Personally approve bookkeeping adjustments .
Control check signers .
Limit the number of signatories to yourself and one or two highly trusted assistants. Keep blank checks under lock and key. Review monthly bank statements. Instruct your bank to send the monthly statement directly to you. Review the statement before passing it on to your bookkeeper.