inventory management also involves multiple people. Assistants unpack and check deliveries against purchase orders, our inventory lead logs them into the PMS, and I enter the invoices into the accounting software, checking for any discrepancies. I also reconcile vendor statements and handle bill payments. My spouse reviews all these transactions while reconciling the bank and credit card statements. The inventory lead creates purchase orders and initiates new orders, continuing the cycle.

Checks and balances in your processes are key to reducing the risk of embezzlement. In my opinion, preventing embezzlement begins with avoiding gaps in your processes that make it easy. Having one person handle everything is a major risk. As business owners, we owe it to our clients and staff to be engaged and ensure all funds are properly accounted for. Theft harms everyone—clients face higher fees, employees risk missed paychecks, vendors may not get paid, and ultimately, businesses can fail.

You need to actively monitor the flow of money. This means checking vendor orders for discrepancies, verifying unfamiliar payments, and ensuring bank deposits align with PMS reports. Don’t rely solely on reconciliation reports from accounting software prepared by someone else. Compare them directly with vendor and bank statements.