Northfield NJ CPA – Tax, Accounting & Consulting Services (609) 641-4000  | 

Doctors’ and Dentists’ Corner- Employee Dishonesty

Dec 3, 2019 | Business

Who owns that nice new car in your parking lot? Do you have an employee who seems to be living at a standard higher than his salary would permit? Hmmm, he (or she) tells you his Uncle Joe died and left him a huge inheritance, or maybe he won the lottery. You’re happy for him; such a hard worker who never takes a vacation!

This could all be as innocent as it sounds BUT it could also be a flashing warning sign of employee dishonesty.

While you don’t want to accuse a valued employee, we would recommend you take steps to protect your company’s assets. For example, a regular rotation of duties among employees may prevent unauthorized transactions from going unnoticed. While you may have concerns that changing longstanding procedures might be unsettling for this trusted and valuable employee, your actions may actually be in his best interest. When employees are cross-trained it makes it easier when they need to take time off.

To mitigate against the selection of a potentially dishonest employee, background and credit checks should be performed before hiring any new employee in a position to misappropriate assets. Your employee handbook (yes, you should have one) should also include provisions for dealing with employees when serious acts of misconduct are discovered or suspected.

Article contributed by Terri Marakos, CPA

Photo by Sharon McCutcheon on Unsplash

Subscribe to our Accounting, Tax and Business Insights Newsletter

Email Address:
This field is for validation purposes and should be left unchanged.
Credit Card Surcharges

Credit Card Surcharges

The first time I became aware of a seller trying to defray the cost of credit card fees was some years ago when I was purchasing gas and saw that at this particular station the price was less when the payment was in cash.  For many years in my universe that price...

read more
The Future of AI Technologies in Accounting

The Future of AI Technologies in Accounting

Merriam-Webster dictionary defines artificial intelligence (AI) as the capability of computer systems or algorithms to imitate intelligent human behavior.  A secondary definition is a branch of computer science dealing with the simulation of intelligent behavior in...

read more