The assets of your company in Houston, Texas, depend on internal as well as external factors if you have employees who participate in accounting, investments, allocation of funds or other financial duties. It may be necessary for you to place a high level of trust in those who work for you. However, at The Jackson Law Firm, we often assist business owners who want to prevent the potential for employee theft by providing tactics for inhibiting embezzlement in a company.
The Houston Chronicle points out that the results of embezzlement may cause permanent damage to the morale of your company, and could even destroy your business, depending on the location, amount and intended use of the funds stolen. But, you may be able to take proactive steps to obstruct the misuse of company funds through careful drafting of your policies and procedures.
A lack of oversight often creates an invitation to employees to abuse the freedom you have given them. You may be able to eliminate the temptation by creating a system that does not allow any one person to operate unchecked. For example, having an employee fill a position temporarily when another is on leave may discourage dishonest activity. Occasionally conducting reviews without advance notice is also a way that many employers reduce the likelihood of embezzlement.
The loss of investor funding can lead to further harm by opening you up to business litigation that may not necessarily be concluded by the closing of your company. For more information about legal issues that may threaten a business’s success, please visit our web page.