Employee fraud and embezzlement are real risks. Here are some tips with some Accounting procedures:
- Make sure that all cash and cheques received are deposited each day, and not left overnight.
- Ensure receipts are made out for all cash received.
- Where possible cash should be checked by a second person.
- Monthly statements (where applicable) should be sent to customers.
- Ordering of cheque books, storage of unused checks, and authorisation of cheques should be someone other than the person issuing the cheques.
- Cheques should require 2 signatories.
- When requesting a cheque, the requisition should have supporting documentation with the requisition.
- While EFT and Bill Pay are the new way, this opens up greater risks if giving staff this authority. Either do not allow or only allow a Director or two to authorise by requisition.
- Bank statements, receipts, and supporting documentation should be checked monthly against the cash book entries by a person other than making the entry.