Oct 16, 2015
It Makes Perfect Sense For You To Delegate All The Mind
Contractor Bookkeeping Service Tasks As You Can!
All Contractors will experience embezzlement at some point in their business life if they stay in it long enough. How much money will be lost is easy to predict.
Group #01 - Contractors Who Have Experienced Embezzlement
> Immediately outsource the bookkeeping chores to a reliable
trustworthy Contractors Bookkeeping Service
> The owner pays the bills every Friday and we can help by:
> Getting all the bills, invoices, bank statement, payroll checks, etc. into QuickBooks so you know what to pay
> Reconcile all of the bank and credit card statements
> Process payroll and you review payroll and authorize payment
> Process monthly and quarterly tax returns which you review and authorize payment
> Enter and reconcile the vendor charges and statements which you review and authorize payment
> Common vendor statement errors we catch:
> Mistakes at order desk
> Missed invoices and credit slips
> Bills sent to wrong contractor
Group #02 - Contractors Who Have Not Experienced Embezzlement
Contractors who want someone to provide Contractor Bookkeeping
Services and pay the bills are practically waving a Red Flag and
holding a sign that says "I’m stupid pay my bills and embezzle as
much of my money as you want!!
Well meaning, yet somewhat lazy Contractors ask if paying their bills is part of our Outsourced Contractor Bookkeeping Services and the answer is NO! We never, ever like to say NO unless it is absolutely necessary.
Small construction companies with annual sales volume under $5,000,000 can not afford to put in place the proper checks and balances or hire the services of an in-house Chief Financial Officer (C.F.O.). Even when it is time to hire someone to "Pay The Bills".
Just expect sooner or later embezzlement will occur because you will try to get by without putting the best practices of money management in place until after you loose a small fortune.
When Do Most People Buy A Burgler Alarm? After Being Robbed, Not Before!
Whenever you think it is a good idea to give your in-house
bookkeeper or any Outsourced Contractor Bookkeeping Service full
unrestricted access your online bank account, savings account,
payroll account or credit card so they can save you time by paying
your bills take two aspirin and lay down for a nap.
When you wake up if you still feel it is a good idea, think again and review the list of the twenty one signs of bookkeeper embezzlement
A Google Search - Of Construction Bookkeeper Embezzlement will generate thousands of hits and most of it could have been avoided if the construction owner had known about and followed a few simple guidelines.
#01 - Don't Hire A Bad Bookkeeper Click Here For More...
#02 - Understand The Employee Theft 10-10-80 Rule - Discovered over many years of experience and first hand observation by auditors, accountants, fraud examiners, anyone involved in detecting employee theft.
Ten Percent - Of all employees including bookkeepers will steal in a variety of ways from office supplies, petty cash, graft, kickbacks and payoffs from your suppliers, vendors and sub-contractors and even hundreds of thousands or even millions of dollars. They will do it regardless of how many security systems are in place because they lack integrity and have an "taker's" entitlement paradigm that states: "It Is Better To Take Than To Make". They cannot be stopped, only caught! And only then if you have systems in place and if you can convince the criminal justice system to take action, good luck with that!
Ten Percent - Of all employees including bookkeepers will never steal because they have integrity and a "Producer's" paradigm that states: "It Is Better To Make Than To Take". In the end these are the people who will add so much value to your company you cannot help but reward them with more money, benefits and recognition. Because if you do not they will be recruited by your competitors. This is another example of Leveling, click here to learn more.
- Of all employees including bookkeepers will steal
if they feel certain they can get away with it and if circumstances
allow for it due to weak integrity and a sense of "Redistributing
The Wealth, But Not The Work Or The Responsibility"
#03 - Your Bookkeeper - Asks for signature authority on your checking / savings / payroll accounts
#04 - Your Bookkeeper - Has a lifestyle that seems above what they are earning
#05 - Your Bookkeeper - Takes Records Home to work on or they want to work in the
office when no one is around (Fraudulent activities are easier when nobody is around).
#06 - Your Bookkeeper - Refuses to take a vacation.
#07 - Your Bookkeeper - Gets defensive when you or your CPA asks questions.
#08 - Your Bookkeeper - Has access to your credit/debit cards.
#09 - Your Bookkeeper - Receives mail-order packages at work.
#10 - Your Bookkeeper - Has QuickBooks in a complete mess and you cannot
understand any of it.
#11 - You Bookkeeper - Tries to explain away delinquency tax notices.
#12 - Your Bookkeeper - Insists on picking up the daily mail.
#13 - Your Bookkeeper - Is the primary contact for your company's banks, auditors, creditors, etc.
#14 - Your Bookkeeper - Misplaces payroll receipts, deposit records, supplier letters and estimates.
#15 - Your Bookkeeper - Makes the bank deposits and they seem to be too small.
#16 - Your Bookkeeper - Show signs of a drinking, drug, or gambling problem or family financial problems.
#17 - Your Bookkeeper - Suggested they could save money by getting rid of the outside accounting firm.
#18 - Your Bookkeeper - Gets angry when you ask for a QuickBooks report
#19 - Your Bookkeeper - Tries to blame the previous Bookkeeper or outside accounting firm for messy QuickBooks
#20 - Your Bookkeeper - Does not get along well with other employees and staff members.
#21 - Paying bills with Cashiers Checks - When you look it up on the internet it will only show as a withdrawal
There Are More Warning Signs - To be aware of and action steps you can take.
Outsource To A Professional Contractors Bookkeeping Service - That has a Contractors Bookkeeping Services System in place:
> They Do Not Collect your money, make bank deposits or pay
any bills or taxes.
> They Do The Bookkeeping including Payroll Processing, Quarterly Tax Reports, Invoicing, Pay Applications, and bank reconciliations and provide you with online access to your QuickBooks For Contractors and a separate 24/7 web based financial reporting tool so you can generate Job Costing and Financial reports anytime you want too.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email firstname.lastname@example.org
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
Need Help Now?
Call Sharie 206-361-3950
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care
about you and all contractors regardless of whether or not you ever
hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.
Randal DeHart | Contractors Accountant