By Jerry Bellune
Business owners need to recognize the importance of their bookkeeping.
A business owner hired a bookkeeper who knew what she was doing, was smart and wanted control of finances.
Our friend Ruth King advised the owner never to let her take control.
Then one day she vanished.
Embezzlers don’t hang around long if they know they can’t embezzle.
The controls she needed to follow cramped her embezzlement creativity.
Most embezzlers get a kick out of figuring out how to embezzle and vanish before they get caught.
Here are three easy procedures to require:
1. NEVER give your bookkeeper check signing authority. NEVER. EVER
2. Provide accurate financial statements the first week of the month for the previous month.
Then do this:
a. Make sure your balance sheet balance.
b. Make sure the aged receivables total matches your balance sheet total.
3. Check that all bank accounts’ reconciliation reports were reconciled.
4. Ask questions if something doesn’t seem right on your P&L or balance sheet.
Ask for backup to make sure the values are correct.
It’s your business.
You have a right to see the backup proving the correct entry amounts.
5. Trust your gut. If you feel something is wrong, something probably is wrong.
Email Ruth at [email protected] for her bookkeeping test and answers.
P. S. For more business strategies, read a free copy of my book Uncover Your Inner Sales Genius at JerryBellune.com.
Copyright 2022, The Bellune Co., Inc.