Quality Should Be Your First Consideration

4 signs someone is stealing from your business

On Behalf of | Aug 29, 2024 | Business Disputes

It’s bad enough to think that any trusted employee might be stealing from your business – but it’s especially devastating to think it might be a business partner.

However, you cannot afford to be blind to the signs that embezzlement is happening. Here are some major red flags:

1. Unexplained financial discrepancies

This can manifest in several different ways. There may be discrepancies in the books that your partner either cannot explain or explains away in a nonsensical fashion. Or you may notice that your business partner seems to be living beyond their means when the business is suddenly struggling. 

2. Strange behavior from vendors 

Are your vendors suddenly adamant that they need to talk to your business partner – but when you ask for details they’re reluctant to share? Your partner may have cut some “backyard” deals with them and they both know they’re doing something underhanded.

3. They’ve gotten secretive

Your business partner used to be an “open book,” but they’ve taken to shutting the door to their office for much of the day, and you notice that they’re keeping their laptop closed and locked. They don’t even seem to like to take phone calls in front of you.

4. They’re always on site

Has your business partner suddenly become a “workaholic,” when they used to take regular leave? They may be trying to make sure that they’re always on hand to intercept any documents that might reveal unusual expenses, missing assets or problems with payroll and taxes.

When trust is lost in a business partnership, it’s hard to know what to do next. Exactly what steps you should take next should be informed by legal guidance so that you fully understand the options and the ramifications for your company.

 

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