In: Finance
What are the preventive steps taken to protect a business from having its cash drained by employees?
1. Proper segregation of work should be there so that the work performed by one individual is checked by another individual, so that the chances of draining cash will be reduced.
2.Conduct of Unplanned audits will ensure decrease in occurence of cash drain as any theft occured could possibly be found on audit.
3.Employees should properly verified for their background before offering them employment so that any bad past of the employees could be found out and helps the employer not to offer job to that employee.
4.Proper Supervision of the employees should be established, if there is no system put in place for their supervision, the employees will tend to indulge in thefts or embezzlement as they are not supervised.
5.Put inplace system controls and also other controls like two key system for opening the cash safe etc.
6.Regular shifting of the employees among their duties which helps the organisation in finding out the frauds done by the prior deployed in such duty by the current employee.
7.Serial numbering of the cash receipts and signature of the person from whom the cash is received and issuance of the duplicate to the person concerned will also reduce the occurence of cash drain.