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Follow on Google News | With Embezzlements Rampant, Biz Coach Terry Corbell Provides Free Asset Protection TipsCiting numerous embezzlement headlines nationwide, Biz Coach Terry Corbell provides strategies for nonprofits and businesses.
By: Terry Corbell “If you surf the Internet using the key word, embezzlement, you’ll find seemingly countless headlines,” writes The Biz Coach, http://www.bizcoachinfo.com. “Embezzlement can happen to anybody,” asserts Mr. Corbell, a longtime business-performance consultant. “Management has to create an environment that will deter dishonesty,” To start, Mr. Corbell says thorough background checks on new employees are necessary. “In new-employee orientation, discuss your company’s financial principles,” After all, he says, without internal controls it’s easy for an employee to hide checks that arrive from customers and stamp them with their own personal bank account numbers. And if invoices aren’t recorded, even salespeople can personally benefit by selling products on the black-market or Craigslist. “Actually, it doesn’t hurt for everyone to know financial procedures,” In his experience, he says trusted employees are often the culprits. “It doesn’t matter how much you trust employees, make certain no one finds it easy to commit embezzlement,” Here are the customary, potential problem areas: Bookkeeping Cash disbursements Data processing Inventory control Purchasing Receiving “Anticipate and analyze each area in which problems can arise,” he advises. “Write procedures for accounting and finance and strictly adhere to them in order to prevent thievery.” Here are the usual embezzlement red flags: • Abnormal increases in sales returns, which can hide payments for accounts receivable. • Atypical bad-debt write-offs. • Abnormal declines or uncommon small increases in cash or credit sales. This might be an indicator of unrecorded sales. • Bounced checks are often a sign of chicanery. • Shortages in inventory can mean employee thefts via phony purchases and unrecorded sales. • Negative surprises in expenses or profit decreases can result in money being tapped illegally. • Sluggish collections can hide embezzlement. • Employees who don’t take vacations or time off. • Employees who live a surprising, extravagant lifestyle. • Good managers walk the floor twice a day or make unannounced spot visits – be very wary of employees who resent such visits. Count on hidden problems. On his business portal, Mr. Corbell provides 21 basic internal controls: http://www.bizcoachinfo.com/ His portal, The Biz Coach, provides countless business-coaching strategies: Planning, Operations, Marketing/Sales, Finance, Tech, Public Policy, HR, and Wall Street. Plus, it has informative news videos: World, U.S. Business, Economy, Markets, Health and Sports. All columns and videos are free. Mr. Corbell's specialties: # # # Seattle Biz Coach Terry Corbell is a business-performance consultant and profit professional. As a columnist, he authors performance- End
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