The Chamber also reports that one of every three business failures are the direct result of employee theft. Each industry is different but here are some good overall pointers. Employers can identify theft patterns, workplace violence issues or previous sexual harassment problems and react accordingly. Addressing these issues before employment begins is much easier than attempting to correct a problem uncovered after the start of employment. Conduct frequent physical inventories.
Pilferage is one of the most common forms of internal loss.
Reconcile sales to inventory on a quarterly basis, or at least annually, with the help of a third party. 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.