Perform a surprise audit to detect discrepancies in the accounting records.
Limit employee access to blank checks, signature stamps and cash on a need-to-have basis.
Divide financial responsibilities among your employees. For example, place different people in charge of ordering and receiving merchandise or require counter signatures on all checks.
Pay attention to inconsistencies in financial records, such as invoices that have been paid twice or outstanding balances.
Note any new work habits your bookkeeper may have acquired, such as working later hours than usual, coming to the office on weekends or working through vacations, anything that allows them private access to company books or products.
Check the Small Business Administration Web site (see Resources below) for additional pointers on recognizing signs of embezzlement in the workplace.
To prove embezzlement, you must show that the bookkeeper intentionally took possession of money or property.
Note which employees may have had access to financial records or to missing property in order to demonstrate that a thorough investigation is being done.
Determine if you will pursue criminal or civil charges to recover lost funds, or if you will handle the situation internally with company lawyers.