Good bookkeeping is the cornerstone of any successful business. It keeps the IRS happy, as well as gives you a detailed look at how you are doing. Keeping those who would steal from you in check is yet another little-known benefit of hiring a good bookkeeper.
How could an employee steal $2.7 million? We have a pretty good idea of why this woman stole millions: because she could. She did it by using a company credit card in the name of another worker to make fraudulent purchases. This went on from 2012 until 2016 when she was eventually caught. How did she do it? The employee was able to do so because she was in charge of the business’s accounting and bookkeeping tasks. With no one to look over her shoulder, she fleeced the company into paying for $2.4 million in phony charges, in addition to another $300,000 in false business checks made to her creditors.
How could it have been stopped? This business clearly didn’t have any external audits, bookkeepers, etc. They left this woman alone for years to do as she pleased. All business should take note. One rogue employee can really hurt you even if you have a small to mid-sized business.
Conclusion on Why You Need to Hire a Good Bookkeeping Company.
What does this have to do with your business? You may not have $2.7 million to steal from however, the above goes to show you how even companies at the top of their industry can still be subject to bookkeeping fraud. The same goes for businesses of all sizes.
Be sure your business does not fail due to a similar scheme by outsourcing to a firm with accountable, managed, insured bookkeepers. If you need bookkeeping, feel free to contact us today.