Entrepreneur Secrets: How to catch a thief

By Jerry Bellune

 

One of our friends found a manager stealing from him.

The man’s bank account had a similar name.

He deposited only one company check a week in it.

Just one but it showed up in the financial report.

Revenue this year had dipped below that last year.

Even his bookkeeper had been fooled.

The manager was making the bank deposits to himself.

 

Are you concerned this could happen to you?

Here’s what consultant Ruth King advises you to do.

1. Print out three reports.

• Aged payables report.
• A aged receivables report.
• Your balance sheet.

Make sure the numbers match on all three.

2. Print out a payroll report.

Make sure the hourly rates or salaries are correct.

Make sure time sheets match the payroll amounts paid.

3. Check payroll taxes on your balance sheet.

Make sure they are not negative.

If they are, find out why.

4. Look at your overhead costs.

Make sure they were approved and make sense.

 

Ruth asks if your bookkeeper make many mistakes?

Good bookkeepers are horrified by mistakes.

They pride themselves on producing accurate books.

Some are so precise it may drive you crazy.

If there are always mistakes, then you may have:

• An incompetent bookkeeper. It’s time to fire her.
• An embezzler. That’s more complicated.

You are starting a lengthy legal process.

Your tax accountant can help collect evidence.

You will need to swear out a warrant.

You’ll hear heartbreaking stories from the thief.

Their family will beg you to show mercy to the culprit.

You will have to stay the course. This is a felony.

Grand larceny can mean jail time.

Ruth says to hope this is only incompetence.

You can just replace an incompetent person.

 

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©2017 The Bellune Company, Inc.

Neither MidlandsBiz.com nor The Bellune Company, Inc. makes any warranty as to the results that may be achieved from using this information. ©2015 The Bellune Company, Inc. All rights reserved. Requests for permission to reprint or circulate may be obtained by emailing [email protected]