Comments on: Trust Isn’t Enough, Protect Your Business From Embezzlement http://www.crackerjackaccounting.com/2008/10/trust-isnt-enough-protect-your-business-from-embezzlement/ Financial Management Consultant for Creative Agencies Tue, 31 Jan 2012 17:51:17 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Is your bookkeeper stealing from you? | CrackerJack Accounting http://www.crackerjackaccounting.com/2008/10/trust-isnt-enough-protect-your-business-from-embezzlement/comment-page-1/#comment-178 Is your bookkeeper stealing from you? | CrackerJack Accounting Thu, 07 Oct 2010 03:51:01 +0000 http://www.crackerjackaccounting.com/?p=263#comment-178 [...] Read more internal controls tips on this post: Internal Controls, Protect Your Business From Embezzlement [...] [...] Read more internal controls tips on this post: Internal Controls, Protect Your Business From Embezzlement [...]

]]> By: admin http://www.crackerjackaccounting.com/2008/10/trust-isnt-enough-protect-your-business-from-embezzlement/comment-page-1/#comment-21 admin Tue, 07 Oct 2008 03:11:37 +0000 http://www.crackerjackaccounting.com/?p=263#comment-21 Ruth, thanks for your comment. I think there are a number of things businesses with only 1 admin can do to limit their risk. I think many of the above items can be adapted for these types of businesses. A *MUST* for these businesses is the owner needs to review the bank statement and copies of cleared checks. If any checks are listed on the bank statement, but the copy is missing, they must get a copy from the bank. If you *HAVE* to have the admin sign checks, then the above step is critical. You need to know who the admin has paid. If the owner doesn't know a payee, they'll need to get a copy of the invoice from the admin. Of course, it wouldn't hurt to have the admin submit check duplicates with the invoice copies, even if the check has already gone out. For petty cash, require the owner to sign the check to replenish petty cash and receipts must accompany the check. Review the receipts before signing the check. Just letting the bookkeeper know you're watching will go a long way toward reducing your risk. Ruth, thanks for your comment. I think there are a number of things businesses with only 1 admin can do to limit their risk. I think many of the above items can be adapted for these types of businesses.

A *MUST* for these businesses is the owner needs to review the bank statement and copies of cleared checks. If any checks are listed on the bank statement, but the copy is missing, they must get a copy from the bank.

If you *HAVE* to have the admin sign checks, then the above step is critical. You need to know who the admin has paid. If the owner doesn’t know a payee, they’ll need to get a copy of the invoice from the admin. Of course, it wouldn’t hurt to have the admin submit check duplicates with the invoice copies, even if the check has already gone out.

For petty cash, require the owner to sign the check to replenish petty cash and receipts must accompany the check. Review the receipts before signing the check.

Just letting the bookkeeper know you’re watching will go a long way toward reducing your risk.

]]> By: Ruth Crane http://www.crackerjackaccounting.com/2008/10/trust-isnt-enough-protect-your-business-from-embezzlement/comment-page-1/#comment-19 Ruth Crane Tue, 07 Oct 2008 00:04:18 +0000 http://www.crackerjackaccounting.com/?p=263#comment-19 Your recommendations are good for those business owners that have employees that allow for division of labor - what about the tens of thousands of businesses that have ONE administrative employee? Thank you Your recommendations are good for those business owners that have employees that allow for division of labor – what about the tens of thousands of businesses that have ONE administrative employee?

Thank you

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