Top 6 Signs of Bookkeeper Embezzlement

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Hopefully the bookkeeper you hire is a top class professional, but you can never be too careful when dealing with these people. Most trained bookkeepers are honest and hard working people who are trying to get by like yourself but in every profession there are scammers just waiting to take your hard earned money. Falling foul to a dodgy bookkeeper is potentially risky for yourself and your company and while you may think they’re doing a grand job, they’re actually embezzling. However, if the professional is good at their job, how can you spot the signs of bookkeeping embezzlement?visit the original source for more details.

Disorganized Books

Bookkeepers Melbourne are supposed to keep things in order so that business owners and managers can plainly see what money is flowing in and out of the business and to also make snap decisions based on the figures. However, when a so-called ‘professional’ can’t keep the books in good order then there is serious concern. Messy books should set alarm bells off as the bookkeeper is either poor at their job or deliberately making a mess so you can’t see where the money is going. Maybe a bookkeeper is having an off-day, it happens but very rarely as they are so highly trained. That is why it’s necessary to view the books at least once a month, if not more often.

Wanting Signature Authority

If your new bookkeeper suddenly asked you for signature authority over your accounts, wouldn’t you ask why they required this? Unfortunately, most people don’t, especially those who have never dealt with a bookkeeper before, but it’s the golden opportunity to embezzle money from your business accounts. They can write a check for a dummy corporation, usually for a small amount so that it doesn’t raise suspicion and since they have signature authority, you never need know. It’s that easy and so frequently done today. Even if you do ask questions, the bookkeeper may have a good explanation but it’s still something to be wary of as it’s so often associated with embezzlement.

Living Well Beyond Their Means

There is nothing wrong with living the high life and being surrounded by luxury – if you can afford it – but is it possible for your bookkeepers Melbourne to live beyond their means? Think about what you pay them every month and how much they appear to be spending, does it add up? If your bookkeeper has gone from a two hundred dollar a month vehicle to a five thousand dollar a month vehicle then it’s time to dig deep. It’s not a crime to live beyond your means and maybe your bookkeeper is maxing out their credit cards but its still should make you question things. Can you be sure they aren’t taking money from you without noticing it?

Have Total Access to Your Financial Accounts

In all honesty, no-one but yourself should have direct access to any debit, banking or credit cards either in your name or the company’s name. Unless they are a purchasing manager who requires the company credit card, no-one actually needs these cards, especially not the bookkeeper. Bookkeepers Melbourne who asks for access to your credit card and other financial accounts should be considered suspicious. If they ask to review your accounts to ensure the figures add up, then that is one thing; you can hand them over records about the necessary business transactions. However, if they want or have full access (to both the cards and accounts) that is suspicious to say the least and it’s a potential sign of embezzlement.

Keeping Payroll Receipts and Making Constant Excuses Not To Show Them

Most bookkeeping services can provide payroll services too, but, how often do you get to see the receipts? A bookkeeper who refuses to show you their payroll receipts or who keeps making excuses as to why you can’t see them (like pretending they’ve forgotten them) may have been doing something they shouldn’t have been doing. Missing receipts are a top sign of bookkeeping embezzlement and while a bookkeeper can misplace one or two receipts from time-to-time, they should also have backup records. They should always produce receipts when asked and never latest news and information at

All Mail Is Diverted To the Bookkeeper

Don’t you find it odd why a bookkeeper has started to divert all of your mail to their office? No, well it’s time to get suspicious! Why is it your bookkeeper requires every piece of mail being sent to you when they only deal with the books and nothing else? It doesn’t add up because as the director or supervisor you should be the one receiving the mail and not the bookkeeper. Often, dodgy bookkeepers Melbourne will divert mail in order to prevent banking statements or other financial letters getting to you which could make it easier to find out about the embezzlement.

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The Signs Are There

If your bookkeeper is embezzling money from your business there are more than likely to be signs of this happening. Yes, you may not have noticed the signs before but just think back for a moment; has there ever been a time when your bookkeeper has acted out-of-the-ordinary? Have they worked in the office late at night when no-one else was there? Have they been reluctant to hand over the books? It’s sometimes the little things that catch people out and you have to be wary of them. The above are just some of the top embezzlement tricks bookkeepers play but there are many more. Learn the tricks of embezzlement and ensure your bookkeeper doesn’t steal from you.

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