Protecting Your Business Against Embezzlement

7. Bond with the employees who'll be handling the money. Having a close relationship with those workers offers some protection for the company, because it can dissuade people from stealing -- they won't want to hurt someone they care about.

8. Do a background check on your employees when hiring them to see if they've had financial problems in the past. It may be a sign that they're struggling financially and might be tempted to take resources from the business to smooth out any personal financial problems.

9. Institute a proper division of functions. The following functions should be assigned to different people to help provide a checks-and-balances function at your company:

• Prepare checks for payments

• Receive payments from customers

• Make bank deposits

• Sign checks

• Bank reconciliation

These nine tips can help you minimize your risk of being a victim of embezzlement. Remember, there's no safeguard that can protect your business 100% of the time, but you can put easy processes in place to help minimize the chances that your business will be affected by embezzlement. And don't think your company is too small -- or too large -- because it happens in companies of all sizes. The key is to be proactive rather than reactive.

If the advice I'm offering is "too little, too late" and you believe you've been the victim of embezzlement, contact your accountant, your attorney and your local authorities for advice on the steps you should take to handle the situation. This can be a very tricky situation to deal with, and you want to ensure that you protect yourself and minimize damage as quickly as possible.