| This is not a course in how to get rich by embezzling | | | | recorded on your bank statement. I know you might |
| funds from the company your work for but a group of | | | | leave the actual reconciliations to your bookkeeper but |
| suggestions on how to protect your company from | | | | you should give the statements a once over yourself. |
| this heinous crime. | | | | You will also want to check the dates, amounts and |
| Embezzlement is defined as theft of money or | | | | signature on all the checks because the automated |
| property from a business by someone who has | | | | systems the banks now use do not always catch |
| custody of the funds or property. Often embezzlers | | | | unsigned checks, old dates and mismatched amounts. |
| are the people you would least suspect. After all you | | | | Only you should have the responsibility of signing |
| wouldn't put your money into the hands of someone | | | | checks. If you are signing all the checks you will have |
| you didn't trust now would you? So don't get fooled by | | | | the opportunity to spot errors and possibly outright |
| an innocent looking face. Of course not everyone you | | | | thefts. |
| meet who comes across as trustworthy is a crook in | | | | Company credit cards should be used judiciously and |
| disguise. But by putting into place a few simple | | | | statements should be checked by you when they |
| procedures you can protect your company. | | | | arrive each month. If you cannot identify a charge then |
| First of all whether you are just starting in your | | | | investigate it with the company holding the card. Often |
| business or been in business for awhile, educate | | | | the problem is cleared up quickly and you realize after |
| yourself in the basics of bookkeeping. You should be | | | | talking with them it is a legitimate charge. But better |
| familiar with the terms used and their definitions as well | | | | safe than sorry. |
| as the proper flow of paperwork. | | | | Payroll checks can be especially problematic even |
| Secondly know how to read your financial statements. | | | | when processed by an outside payroll service. After |
| Understanding the types of accounts and how they | | | | all, who is calling in the payroll? Not you the business |
| increase or decrease as transactions are posted will | | | | owner I bet. Check out your payroll reports before the |
| help you see when things just don't look right - a | | | | checks are given out. Know your employees pay |
| possible sign that someone is dipping into your funds | | | | rates. Verify that vacation, sick and other paid days |
| for their own benefit. You should at the very least | | | | off are correctly handled. |
| have a realistic "guesstimate" of how much you are | | | | Only on your authority should an employee expense |
| spending for the different expenses your company | | | | reimbursement or loan be issued. Make this a hard and |
| incurs. If you are seeing higher than expected | | | | fast rule. |
| expenses on your financial statements, than you might | | | | There are many, many hard working and very honest |
| have a problem that needs to be investigated. If you | | | | bookkeepers but a few have unfortunately given |
| do not review your Balance Sheet and Income | | | | these good people a black eye. By being vigilant you |
| Statement each and every month you might miss | | | | are not only protecting your company but you are |
| these important clues. | | | | verifying that the bookkeeper you employ is in fact the |
| Review your bank statements every month checking | | | | trustworthy person you already believe them to be - |
| for checks or charges that do not make sense to you. | | | | and for all you great bookkeepers this is protection for |
| If you are making deposits made up of cash and not | | | | you as well. You cannot be accused of misuse of |
| preparing and making the deposits yourself (which I | | | | funds if you don't sign checks, use credit cards and |
| highly recommend) than also verify the deposits | | | | authorize payments. |