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Avoiding bookkeeper fraud

As a small business owner you will have a lot of control over the books along with payroll and other financial matters. As your business grows and you decide you need a vacation, who is left behind to care for your business books? You will need to leave the simple method up to one of your regular employees or you may decide that your business is large enough now that it's time to hire a bookkeeper. Bookkeeping usually involves inputting numbers, negotiating prices with vendors, and managing payroll. It can take a huge burden off your shoulders to place it into the hands of another person but with that can also come risk. Bookkeeper fraud is not uncommon as these individuals see the numbers all the time and have access to your accounts. It's easy for them to find a way to start taking off a cent here and there until they have built up a nice nest egg and you are wondering what is going on with your product mark up rates and other things that may be behind the sudden drop in your income.

Hiring a bookkeeper is a great way to move forward into that next realm of competition. While you might not be to the level as others in your industry, you are finally giving your company a shot at being a contender. Your completion will be able to see this and they will notice that you are not just a fly that can be swatted away. A bookkeeper will take on so many of the mundane financial tasks that you can focus more of your efforts on the growth and expansion of your company.

For small business owners, the saying rings true "hire someone that is smarter than you are." This is especially true for bookkeeping since this person will be preparing financial reports that are used to attract investors and also used to show lenders that you have solid record keeping. With bookkeeping you will also be able to compare your budget along with your actual expenditures to see where you are really at.

Cash flow is the king for small businesses and you need to know where your numbers are at. Leaving this information up to the bookkeeper will also be able to provide you with a chance to avoid having a sudden drought in money and falling onto your cash reserves. You can see where you are at and then make extra efforts with your accounts receivables to collect the money that you deserve and need from your customers to keep your business running.

When you get the resumes from a few bookkeepers, you need to take the time to review them and read up on their previous jobs along with their referrals. Learn about the character of this person so you can see if they are trustworthy and if they will be able to provide you with peace of mind.

Never hire the first person you interview. Even if you really like them, you need to bring in multiple employees to work with and to see how they click with your other staff members and if they will be able to provide you with the right experience and expertise you need for your company to become a success.

Use QuickBooks or another program that allows you to track the things that the bookkeeper is doing. You want to keep an eye on them and to make sure they aren't doing things that are going to steal money from the company and that they are honoring their job description and the values of the company.

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