How can you avoid your bookkeepers stealing from you? Money is the most important limited resource to an entrepreneur. It’s serious and we hope it hasn’t happened to you. Accordingly, in this episode, our founder W Michael Hsu gives a piece of advice which many entrepreneurs neglect. Let’s check it out!
Topic – How to Stop Bookkeepers From Stealing Your Money
How Can Your Employees Steal From You
There are two accounting function that you should never delegate to the same people in your business. One is treasury. The other one is financial reporting. Treasury function here means the ability to move and pay the money.
Example – Many new entrepreneurs or small business owners who’re doing less than $2 millions may don’t have a lot of things to do in their accounting. As a result, it seems make sense to delegate all accounting jobs to one person. It gives the incentives for people to steal from you. And if they have accesses to your book, they can shift your numbers without being noticed.
How to Prevent Your Business From Stealing
The best and the easiest way is to separate the duties, even those work can be done by one person. Make accountant to queue everything up, but leave the authorities of moving/paying money to yourself. That way you can keep your financial on top of your mind, also able to make a timely adjustment when things go wrong.
We’ve seen a lot of entrepreneurs try to save the few dollars and go with a cheaper solution that is incomplete or has fundamental flaws in your system/process only to lose out big time.
Our suggestion is to separate the duties and go out, find someone who is trust-worthy and will hold you accountable on your financial. Share your thoughts with us and let us know if you need help.