Entrepreneur Secrets: Become a fool-proof entrepreneur
January 9, 2017
By Jerry Bellune
We fired an employee for committing a felony.
A fellow publisher hired him.
When he found out about the felony he called me.
Why didn’t you warn me about him? he demanded.
Why didn’t you call me about him? I replied.
We hire for brains, ability – and a track record.
We call past employers and ask:
- Under what terms did they leave you?
- Did you ever doubt their honesty?
- Based on performance, would you rehire them?
Their answers could raise warning flags.
Despite that, all of us can occasionally be fooled.
We aim to hire smart, talented, clever people.
Successful embezzlers are usually all three.
But they have one other quality we should look for.
What are their financial needs?
Are they addicted to anything?
Our friend Ruth King has some advice for you.
It’s about protecting your cash flow.
How do you know your employees are honest?
How can you spot when one is stealing from you?
Even great procedures may not stop an embezzler,
Smart ones find ways around procedures.
Here are Ruth’s six ways one may steal from you:
- Accounts receivable aging report doesn’t match
accounts receivable on the balance sheet.
- Accounts payable aging report doesn’t match
accounts payable on the balance sheet.
- Payroll: An extra hour added or a small pay increase.
You’re not likely to find it unless you are looking.
One owner noted her payroll for one person was high.
She caught the payroll clerk changing hourly rates.
- Payroll taxes seem too high (or are negative).
This is a way to spot dollars added to a paycheck.
Over a year it adds up to thousands of dollars.
- Penalties or fines when you know you have none.
- Increasingly high overhead expenses.
You should know if overtime is being worked.
Set a policy: All OT is approved in advance.
As the owner, it must be OKed only by you.
Next: How to catch a thief
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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]
