Simple Controls You Can Put Into Place to Discourage Fraud

Simple Controls You Can Put Into Place to Discourage Fraud

News You Can Use
As a business owner, there are many simple controls that you can put into place to discourage fraud from happening.  Small business owners never intend to leave their doors wide open to theft and white collar crime – it just sort of happens; and unfortunately, small businesses have every reason to be concerned about fraud. Fraud is often a cost of doing business that is hidden from view and unfortunately most business owners only know about fraud only when it's discovered; after the fact and then it is sometimes too late to do anything.  Eliminating fraud completely isn't possible, but with reasonable actions made by the business owner, it's impact can be limited.  Preventing fraud from occurring in the first place, however, is a win-win situation. This final article in…
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Recording & Tracking Employee Personal Tool Purchases

Recording & Tracking Employee Personal Tool Purchases

Customers & Accounts Receivable, Payroll Tips, Vendors & Accounts Payable
This question came up on a discussion list that I belong to over the weekend and I thought "hey, what a great blog post and how to tip this would make"!  So here goes! I am bookkeeper for a construction company.  Sometimes the workers purchase tools on the company American Express card and write TOC for "Take Out of Check" on the receipt.  There are oftentimes material expenses for the company on the same receipt. How do I record this?  What they did before was to subtract the amount from the gross wages when called into ADP, so it's kind of a pay advance. But don't advances require the taxes to be taken out? Should I get check breakdown and subtract from net wages instead or treat as a loan?…
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Employees and Company Credit Cards – What’s the Charge?

Employees and Company Credit Cards – What’s the Charge?

Be A Better Bookkeeper, From Our Guest Bloggers, Vendors & Accounts Payable
If you provide your employees with a company credit card, eventually someone is going to use it for a personal expense. In many cases, the employee is not attempting to defraud the company. But in other cases, it can be intentional. Either way it can create potential problems for your business. Several years ago, one of my clients issued her bookkeeper a company credit card. After a period of time, the bookkeeper regularly used the company credit card for personal purchases and did not notify the employer or reimburse the company. As the balance on the credit card increased, the bookkeeper began making partial payments on the increasing balance. My client completely trusted her bookkeeper, and never reviewed the credit card statements prior to payment, and the balance became quite…
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Entering Bills or Checks in QuickBooks – Items vs. Expenses

Job Costing Tips, Vendors & Accounts Payable
  When entering bills, checks, or even credit card purchases in QuickBooks you have the choice to use an Items or Expenses tab - choosing the Items vs. Expenses tab will depend on what the money being spent was for. Your business spends money on a wide variety of things - employee payroll, payroll taxes, office supplies (such as paper and envelopes), utility bills, things that you purchase to resell to others, and goods or services from others are just a few examples.  In essence every penny that your business spends is an expense to your business - but how you record the purchase in QuickBooks does make a difference. Because you do you a choice to use an Items or Expense tab when entering transactions in QuickBooks; many people…
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Protecting Your Business From Fraud-Are You Doing Enough?

Be A Better Bookkeeper
Protecting your business from fraud and theft is a tough job these days - are you doing enough as a business owner to ensure that your assets are safe? Did you know that according to a 2010 report from the Association of Certified Fraud Examiners, incidents of occupational fraud are 31% more likely to occur at small business as opposed to larger companies?  And, to add insult to injury, as many as 40% of small business owners are embezzlement victims and that a staggering one-third of all bankruptcies are the direct result of internal theft! To be hones, I had no idea of these statistics - until I read a very interesting article yesterday called Five steps to prevent small business fraud, in the Hartford Business Journal Online. The article…
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