I'm not sure why—maybe I'm naive—but I'm always stunned when I hear of a bookkeeper or treasurer stealing money from the firm they are working for or volunteering for.
Without the proper checks and balances, your bookkeeping system could be set up to allow theft and pilferage, and it could be happening right in front of you.
In the past few weeks, I've encountered several stories of businesses and non-profits being taken for a ride.
Situations like these can be avoided if the proper time and effort are put into building a strong bookkeeping system and utilizing the checks and balances associated with it.
As a business owner or manager, you want to trust the person managing your money wholeheartedly and be able to identify areas where money can disappear. If you don't, you might want to take the necessary steps to change that.
Empower Your Bookkeeper
You want a bookkeeper that will ask the tough questions.
Some bookkeepers may have trouble with this, especially if they are family members or close friends who are working on the books.
Owners or managers sometimes turn to someone they know with some free time on their hands to help out with the books. I always cringe when I hear the previous person doing the books was a young cousin, retired aunt, a neighbor with some free time 3 hours a week, etc.
Do they have an accounting background or are they QuickBooks certified?
This can lead to a major headache if the person isn't locked into what is happening with the business on a daily basis and isn't fully submerged in the operations.
Will they know how to handle ATM withdrawals or transfers out of the bank accounts? Will they ask about cash transactions that may dead end somewhere in QuickBooks? All safe money, petty cash, and tills better be on the books and verified on a periodic basis.
Review, Review, Review
Owners and managers may share some of the blame when it comes to the question: How could we have been robbed when we trusted the bookkeeper and didn't bother checking their work?
I'm always amazed when I talk with a business owner or manager that doesn't have the ability to view their books and review their financials without the help of their bookkeeper.
Although the main goal of a bookkeeper is to make life less of a hassle for the owner or manager, the owner or manager should not let go of the system entirely. How would they ever know what is accurate and what is 'cooked'?
There are many steps they should take along the way, and we have written about it many times in the past.
Matt and I talk about this topic a lot due to its importance. How can one feel comfortable if they aren't sure if their bookkeeper or treasurer is robbing them?
Not only should cash be viewed under a microscope, but so should inventory, office supplies, and services. If these items are walking out the door, your bottom line will suffer.
We specialize in setting up bookkeeping systems that reduce worry and limit concerns about theft.
With an increase in confidence in your bookkeeping, you can direct your energy and worries towards other areas of your business such as growth and increased revenue.
Feel free to contact us if you'd like to discuss how our outsourced bookkeeping services can directly benefit you and your business.
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