Whether you are just deciding to hire an internal bookkeeper or have employed one for years, the driving force behind the decision is that you, the business owner, simply don’t have time to do it yourself anymore. Once hired, the Company’s bookkeeper generally does it all including paying bills, payroll, invoicing customers and collecting payment, reconciling the bank statement, bookkeeping and compiling financial info. Tremendous trust is placed in this position and far too prevalently that trust is violated in Companies when you hear or read about another case of employee embezzlement. So what can you and should you do, as the business owner, to protect yourself from becoming the next victim we hear about?
Here are a couple tips.
Tip #1- Check Your Bank Statements
One easy way to deter theft is to make sure you are opening the bank statements when they come in the mail. We know, you have enough to do already and that’s why you hired someone to do this for you, but this is your livelihood we’re talking about here. So, open the bank statements! Then, review it in detail before you give it to your bookkeeper to perform the bank reconciliation. Review the transactions and ask yourself if the checks and direct debits coming out of the account are going to recognizable vendors for normal business expenses in amounts that are reasonable. If you see payments to vendors or persons that you don’t recognize, that’s when you should ask to see applicable invoices.
It’s important to review the bank statements, even if you are the only one authorized to sign checks. Those with access to your checks and banking information can find ways to pilfer funds, even without signing authority. Most often, an employee’s belief that you are watching over their work product will deter them from possible theft activity.
Tip #2- It’s Okay To Use Outside Help
If you believe you may have a problem or, better yet, you want to avoid one, hire a third party to look over your bookkeeping transactions. Performing periodic reviews provides a chance for a fresh, objective set of eyes to make sure that everything is on the up and up. Utilizing an outside consulting firm, as a resource for your business is one of the best things you could do.
CPA Consulting Group, LLP in Casper, WY is one of the leading consulting and accounting firms in the region. We are committed to providing a variety of services to business owners, including tax preparation, accounting, bookkeeping, payroll services, business consulting and more. Our number one goal is to make your business financially successful.