What really happens in your accounting office?

  I had been working with a Client for several months, when we found out that the in-house bookkeeper had stoled $50,000.00 from him.  Wow, was that a shock for both of us.

In order for this issue to be resolved it took many hours and several thousands dollars.  I had to go through each check that was written.  I had to know if the checks were forged or if they were stamped or just not endorsed.  Did you ever look at your checks to see if the bank cashed them without some form of endorsement?  It happens. Anyway, I had to have every copy of each check that the bookkeeper had written. I had to have reports on what the bookkeeper was owed for Payroll and how much was theft. 

As the case ended up, it took three years to resolve it. I won the case court for my Client and he is still being paid back for the theft.  This has been going on for 5 years now that the previous bookkeeper is still paying back the money she took.

So—my suggestion to you, is look at your bank statements each month, verify the signatures are correct. Call the bank if checks are going through without an endorsement.  Look at the copies of your checks, be sure that the amounts are correct.  Most of all, if you have a signature stamp, lock it up tight or destroy it.  No matter how much you trust your bookkeeper, every now and then they get into a spot where they need some money.  The case above was for drugs.

This case cost my client several thousands of dollars and time and could have been avoided had the client check his statements.  Now every month we go through his statement together and check the signatures.