Reno's on the money with the vacation idea.
Once upon a time I was told that bank employees had to take a mimimum vacation of a week at a time.
If it was only a day or two at once they could keep cooking the books and nobody would be any the wiser. But their doctoring would be discovered if they were gone enough days in a row.
You might also want to try to find a way to let your friends and contacts unofficially 'know' what went on so that they don't hire the same crook and they get ripped off as well. Unfortunately, crooks like these moving from job to job is all too common.
If you get bigger and have more than 1 person in charge of the money...moving them around works wonders. If they're cooking the payroll books, when they get swapped to Receivables next quarter it will be easy for their replacement to catch the problem. Be sure to let your employees know that your door is always open if they have a question or see something that doesn't look quite Kosher.
