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Is your accountant skimming off the top? How to know.

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Have you noticed your finances reducing? Have you noticed that something wasn't quite right with your finances. Do you think your accountant is stealing money? How do you know if you accountant is stealing money and if they are how can you protect your account?

No matter what you should know your companies finances. Sadly, it is a problem in today's world that accountant's are stealing money from their companies. They can steal money easily since you aren't in control of the day to day finances. You should know some ways on how to protect your account.

Research states that many accountants steal money from their companies because they hold a personal grudge or vengeance against the boss or the company. They also steal because it is easy and they have no moral to resist easy money. Your accountant can steal from your inventory and assets, from petty cash fund, they can steal from deposits, and even directly from your checking account.

Stealing from inventory is a common problem in many companies, it is easy to walk into a room and load up their car with anything if you are not around. You can protect yourself from this by installing a security camera, even a dummy camera that looks real.

Accountants steal money from petty cash funds all the time. It is usually not tracked until the end of they day, so they can embezzle a little money everyday even if it is just a dollar or two. You can protect your account by locking it in a drawer or filing cabinet. Cash usually needs to be given out sparingly and you should only give out cash in exchange for a receipt.

Let's look at a few ways you can protect your account.



  • Find the right accountant by taking preventative measures. Start out with a good relationship and make sure you check references on your potential accountant. Ask your potential candidate if they have had problems in the past with employers and contact those employers to verify the information.

  •  Install oversight procedures to ensure honesty and account tracking measures. As a manger it is your job to review the financial records of the company that are reported by the accountant.

  •  Don't be quick to accuse. Everyone can make mistakes, if you notice something out of the ordinary, sit down with your accountant and go over the reports that were filed. Ask to have each report carefully explained for you will not be out of the loop.

  •  Require documentation for all petty cash, bank deposits and anything else to do with money coming in to your company. Checking up on your accountant is a good way to protect your finances.

  •  Have an oversight committee. If you have a level of oversight where you accountant is required to back up all figures with documentation, you can review them and build a level of trust.

Being educated about your finances and how you can track your accounts is the key. You should be well informed about different types of expenses and profits that are going on within the organization. Educate yourself with accountant terminology so you are thoroughly rehearsed in all aspects of your accounts. If you find yourself relying on others for clarification it opens the door for dishonesty and manipulation by your accountant.

You can also protect your account with your bank by setting up account tracking. Your bank can inform you of any withdrawals or deposits that were not reported directly to you. In the end you don't want to leave any negotiation with an accountant stealing money. You should disclose a termination policy when they are hired to let them know up front that you track your accounts and any deceit on their part will result in them losing their job.

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Categories: Accounting, Finance, Security,

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Posted by DF
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