Warning Signs your Bookkeeper may be Stealing from you!

Bookkeeper fraud is very common, unfortunately for business owners. If you have even a slight suspicion that your bookkeeper may be cheating you, it is safe to keep a check on them. Be alert to warning signs in employee behavior. One way is to keep a regular check on the records by remotely signing in and going through accounts. This can be done when your accounting software, like Sage, is cloud hosted. Sage cloud accounting enables authorized users to access accounts remotely from anywhere, anytime. When your bookkeeper knows that records are being monitored regularly, they will be wary of doing anything wrong.

Bookkeeper fraud is very common, unfortunately for business owners. If you search for stories, you will find too many to count. Bookkeepers know how to manipulate your accounts and financial records, which makes it even more difficult for you to identify theft. One way is to keep a regular check on the records by remotely signing in and going through accounts. This can be done when your accounting software, like Sage, is cloud hosted. Sage cloud accounting enables authorized users to access accounts remotely from anywhere, anytime. When your bookkeeper knows that records are being monitored regularly, they will be wary of doing anything wrong.

Embezzlement, theft, fraud, call it by any name, its effect on a business is disastrous. If you have even a slight suspicion that your bookkeeper may be cheating you, it is safe to keep a check on them. Be alert to warning signs of employee behavior. Unlawful activities can be a repercussion of an external factor in the employee’s life. A sick relative, a personal debt, a spouse losing a job, or any other financial pressure. These issues are sometimes accompanied by a change in behavior.

Here are a few tell-tale signs that you should keep a lookout for in employees.

1. Change in Habits

An employee can become disorganized, discontented, or generally distant. They might suddenly start making a lot of personal calls. Keep in mind that these changes might mean something else, and chances of their connection to a fraudulent behavior are small. Nevertheless, it’s no harm in talking to them and getting an idea of what might be wrong.

Too often we are suspicious of an employee who is a slacker or an underachiever. But beware, those burning the midnight oil may not be as workaholic as you think. If your bookkeeper, or manager, or anyone who has access to important financial records and papers, start working on weekends, or during vacations, or longer hours, it is important to take notice of their activities.  

2. Financial Difficulties

In most cases, it is not the sole intent of the employee to cheat, but it is the result of circumstances that pressure them to commit embezzlement.

There may have been a sudden debt situation, like, gambling, drug addiction, divorce alimony, can cause a desperate need for extra money. Then it does not matter if the employee is young or old or has been loyal to the company. Anyone can be a potential threat to the business.

Some people have a habit of spending more than they can afford. Big houses, luxury cars, overseas vacations are all great, but only if you can afford it. Overspending, loans, high credit debts are far too common. They can affect people in such a way that can steer them to take the chance to commit a crime, especially if they have no prior record of it.

3. Control Issues

It is critical to have separation of duties for different financial functions like payment of bills, account management, etc. If you notice that your bookkeeper wants to control all the activities and financial management functions, there might be something wrong.

Sometimes the reason for employees stealing can be that it is too easy. Blindly trusting your employees and leaving your business assets unsupervised is like leaving your company’s vault wide open for everyone. You need to establish an accountability system and monitor things yourself on a regular basis.

Cloud-hosted accounting software allows you to remotely access your books that lets you randomly check your accounts from anywhere you want. Sage is a powerful accounting software that can help you prevent miscalculations and human errors. When hosted on the cloud, it grants you many benefits, major being instant remote access to safeguard your business.