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Try not to become a man of success, but rather try to become a man of value.

Albert Einstein

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Instead of saying "I don't have time" try saying "it's not a priority," and see how that feels. Often, that's a perfectly adequate explanation. I have time to iron my sheets, I just don't want to. But other things are harder. Try it: "I'm not going to edit your résumé, sweetie, because it's not a priority." "I don't go to the doctor because my health is not a priority." If these phrases don't sit well, that's the point. Changing our language reminds us that time is a choice. If we don't like how we're spending an hour, we can choose differently.

Wall Street Journal

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Knowledge vs. Wisdom

Knowledge -acquaintance with facts, truths, or principles, as from study or investigation; general erudition: knowledge of many things.

Wisdom - the quality or state of being wise;  knowledge of what is true or right coupled with just judgment as to action; sagacity, discernment, or insight.

 I think it’s really important to understand that one can be a smart person, but without the action to automate that knowledge, there may be a lot of opportunities lost.  I truly believe that we are all put on this earth for a purpose.  We do not all have the same purpose or we would be robots.  We have different interests, abilities and vocations.  Some of us are really talented in marketing. Some of us have an easy understanding of IT. Some of us struggle to comprehend how people can do repairs on their house.  Take me for example.  I know I am blessed with an organizational ability and knowledge curiosity to help me strive for more.  I am not blessed with the ability to fix things.  I once had a light out in my house for a year because I never knew it needed a fuse replaced versus the 4 light bulbs I had bought for it (and I refused to hire a handy man for one light bulb issue).  

The point of this story is as entrepreneurs we all have our skill set.  We all have the gift we were given to excel above others in what we do with the knowledge that we know.  We are confident in this knowledge so much so that we have created for ourselves a livelihood from it.  We have taken that extra step to put our dream into play.  Then the next phase of this dream comes to reality.  “I am actually running a business with what I love to do!”

After that phase dies down the next sense of reality sets in.  How do I manage all this?  You realize that what you set out doing.. lets use the example of “fixing things” gets bogged down with: networking, website building, newsletter creating, Facebook status updates, paying vendors, tax preparation, hiring people, customer service, responding to a billion e-mails, etc. etc. etc.  Then you soon find out that running a business is not all you thought it would be.  You seem to remember daydreaming of Wednesday golf outings as a reward to yourself for taking this entrepreneur leap.  Now you are looking at your computer screen dreading menial tasks you thought you had escaped from in the Corporate life.

You are not alone. You are a business owner.  You want to do what you love, but sometimes it’s too much for you.  Congratulations, you have just been given knowledge.  As a business owner, the next step you need to grow your business is the wisdom to put into action the fact that you cannot do it all.  You will never transform that knowledge you have to wisdom without the action of changing things for improvement.  

If you need help – I am here for you.  If bookkeeping isn’t what you need, let me know and I would be happy to put you into contact with a vast amount of other people just like you.  People that are wise in what they do.  People that want to help you take action and grow.

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Protect Your Small Business from Embezzling Bookkeepers Part 4: Common Scams

I am always asked if it is wise to speak openly of how bookkeepers steal since I may be giving bad bookkeepers new ideas, causing business owners to lose money and sometimes even force them to put their businesses for sale. My answer to this is always…Absolutely. It is absolutely a wise idea to inform Small Business Owners about where money might be leaking from their business. I especially think it wise since most bookkeepers usually already have this information, and if they go unchecked, the temptation to steal can be so great, morals and ethics fly out the door…especially since embezzlement can often happen for years without getting caught, and if they do get caught, most Small Business Owners never get their money back. In fact, you have to ask yourself, if you had the opportunity to steal from a bank and never get caught, would you do it? That’s how tempting it can be for a bookkeeper if given the opportunity. Therefore, in this fourth article of it’s four-part series I list three very common embezzlement scams:

 1.The Post Office: The Post Office is a common place where scams can be run. It has nothing to do with the people there, it is simply the way the Post Office was set up to be accommodating to the general public. Here are two common scams and what you can do to protect yourself.

A.Stamps: If a letter has too many stamps on it, the post office will happily offer a refund of excess postage. Unfortunately, that means that if too much postage is purposefully put on one item, anyone can take that item to the Post Office for a refund in cash. Again, it is an easy scam to pull off and can be easily hidden if a company sends out a lot of marketing mail or bills.

Protect Yourself By: Keeping track of how many stamps your bookkeeper has at any one time and how many stamps are given out to other employees. This can be done by simply keeping the stamps in your own desk. If you have a postage machine and cannot monitor stamps given out, take items to the Post Office yourself or give those items to someone in the office who has no access to the machine. This way, there is some accountability in the office and offers some protection to you.

B.Money Orders: In case you were not aware, the Post Office does offer money orders for sale. Unfortunately, this means that an embezzling bookkeeper can take any check written to the Post Office and have it turned into a Money Order made out to themselves. That money order is as good as cash and can be put into any bank account without a Small Business Owner ever knowing.

Protect Yourself By: Demanding to see receipts from the Post Office immediately. The Post Office always gives a receipt when it makes a sale, no matter what. If a money order is purchased from the Post Office, that money order is going to show up on the receipt. By reviewing receipts every time someone goes to the Post Office, you will know immediately if any money goes astray.

 2.Payroll Taxes: Using Payroll Taxes to embezzle thousands of dollars is one of the most common ways a bookkeeper can steal. It is so simple and so easy, that many people do this year after year without ever getting caught. What they do is pay too much in taxes every single pay period, whether to themselves or a ghost employee. Then, at the end of the year, they file for a refund and get back thousands of dollars instantly.

Protect Yourself By: Having your accountant review and/or file the payroll taxes every quarter. Specifically ask them to check for this kind of fraud since accountants don’t look for embezzlement unless you ask them too. If the taxes are too high, an accountant will let you know.

3.Redirected Payments: This is where things can get a bit tricky. Bookkeepers, good or bad, are in charge of writing checks. If an embezzler is smart enough to not forge a check, then an embezzler is also smart enough to get a Small Business Owner to sign a check for them. However, if a signed check gets to the person or company its supposed to get to…well, that is another story. It is very easy for an embezzler to get a Small Business Owner to sign a check to a company, and then deposit it into a different account.

A.Consider this: You have a Citibank Business Credit Card. You charge on it every month and therefore, every month a payment has to be made. Once a month like clockwork, your bookkeeper comes to you with a check for payment. You think nothing of it and sign it never suspecting possible foul play. You also don’t notice if an account number was or was not listed on that check. Once you’ve signed that check and let it leave your sight, an embezzler could then put their own Citibank credit card number on the check paying off their own credit card instead of yours. Then, they would make the minimum payment on your card so that you would never suspect anything is wrong since you can still charge on your card. This can be done with any number of payment checks whether to credit cards, banks or even the IRS. Even if there is an account number on the check, it may not be yours…afterall, do you have all your account numbers memorized?

 Protect Yourself By: Always be the first to look at the mail…especially bank statements and credit account statements. If listed payments are less then what you remember making, you have an excuse to go and find the check. If checks have account numbers crossed out and new ones written out, you will be the first to know by simply opening your bank statement first. Anything that has white out or has been crossed out should set off alarm bells. Check these items closely right away to catch an embezzler as soon as theft occurs.

 While there are many other ways that embezzlers steal, this is just a few of the most common ones.

Article found @:

http://www.americanconsumernews.com/2008/03/protect-your-small-business-from-embezzling-bookkeepers-part-4-common-scams.html

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Protect Your Small Business from Embezzling Bookkeepers Part 3: Ghosts in the Company

Believe it or not, Ghosts do exist. Even worse, they can exist in a business. When I say “Ghosts,” I do not mean the ethereal spirits that walk through walls and wail in the night…the sounds of chains rattling and making goosebumps rise on your arms. No, when I say “Ghosts” may be inhabiting your company, it simply means that you may be paying employees and vendors that do not really exist…or if they do exist, they do not really provide you with the services or goods you may be paying them for. In this third article in its four-part series, I show you how ghosts come to settle at your company (a common bookkeeping scam) and how you can exorcise them for good.

 GHOST VENDORS

 Ghost vendors are basically companies that you pay for goods or services you did not receive. Since bookkeepers often find vendors to help keep a company afloat, it is very easy to convince a business owner that a check to a vendor is a valid payment. As a business owner, it is your job to know if that expense is legit. Checking with your state to see if a business is valid is not going to guarantee your protection. You have to do more.

 Consider this: It costs less then $100 to get a Fictitious Business Name…a name which is then filed with the state and requires little or no back up documentation to acquire. Once someone has a Fictitious Business Name, they can then open a Business Checking Account in that new company’s name. It takes no more then an hour to get both legal products, and an embezzler is then able to deposit checks into that account immediately. The bank with the embezzler’s account is not going to know if the check they are cashing is valid or not, nor will they know if the signature is truly yours. All they care about is taking care of “their customers.” Therefore, it falls on your shoulders to protect yourself.

 Protect Yourself By: Being obnoxious and paying late. Even Ghost Vendors submit invoices, and there should be an address on that invoice. If there is one, drive by the address and see if there is a business sign posted anywhere out front. If there is not an address, or there is a PO Box, then do not sign a check paying that vendor unless that vendor is willing to come to you in person to collect that check. If they are in collusion with your bookkeeper to embezzle you of funds, they will be less willing to face you then your bookkeeper would be. If your bookkeeper harasses you to make the payment and claims that the vendor is harassing them, tell your bookkeeper to forward the vendor’s calls directly to you. A good bookkeeper will be relieved to not have to deal with angry collectors, and any other response then relief should tell you that something is wrong.

 GHOST EMPLOYEES

 Ghost Employees are basically people you pay every pay period who do not really work for you or your company. Obviously, if you are a small company, it is going to be harder to slip a Ghost Employee’s paycheck across your desk, but, the larger the company, the easier it becomes to add ghosts. An embezzling bookkeeper will not only deduct the payroll taxes from this person’s check to make it look like a valid paycheck when you sign it, but they will also pay payroll taxes out of your account to hide the embezzlement from your accountant.

 Consider This: A carpeting company I once worked with had many flooring installers who worked “in the field.” Many of the installers would hire assistants that they would pay from their own pockets in the beginning, but over time, they would ask the business owner to add the employees to the payroll. The owner would do it sight unseen, thus making it very easy for an embezzling bookkeeper to slip in a few more ghosts without the owner’s knowledge.

 Another way embezzlers add Ghost Employees is to cut checks to their friends and / or family. That person may not even be aware it’s done if the embezzler has access to their checking account. Any deposits made into a joint checking account would easily be explained away as “The Embezzler’s Paycheck.” (This is common between an embezzler and their spouse…the check being written in the spouse’s name, and the spouse never seeing that check.)

 Protect Yourself By: Getting to know all of your employees and insisting on seeing them “on the job. ” The less involved you are, the easier it is to embezzle from you…and an accountant will not catch this kind of fraud unless you pay them thousands of dollars to investigate it. If you do not like an employee or do not feel that they are actually working for you, fire them immediately. It is better to pay towards unemployment then worry that an unfit employee will drive customers away, or get hurt “on the job” and cost you thousands.

 While most people might think their bookkeeper is “totally trustworthy,” it is blind trust that makes you an easy mark for embezzling funds. Since accountants do not look for embezzlement unless you request it and are willing to pay thousands, it is your job to be involved no matter how busy you might be. By simply popping in for a “random” company checkup, you will keep your bookkeeper on their toes enough to make sure that they do not want to steal from you. It’s good advice for anyone no matter how long you’ve worked with your bookkeeper since many bookkeepers steal for years and never get caught until they quit.

 Article found @:

http://www.americanconsumernews.com/2008/02/protect-your-small-business-from-embezzling-bookkeepers-part-3-ghosts-in-the-company.html

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Protect Your Small Business from Embezzling Bookkeepers Part 2: Credit Cards and Identity Theft

Having been in the bookkeeping and retail business for more then ten years, I have seen a lot of credit card theft on both sides of the Office Door. I have seen credit cards pull a disappearing act, employees buy unauthorized items on company credit, and tens of thousands of dollars charged within a thirty-day period. In my retail days, I actually caught a credit card thief thirty minutes after she charged three hundred dollars in retail. The thief turned out to be the actual roommate of the person who’s identity she stole, and I only caught her because she left a package behind and I called the owner to come get it. (“Surprise, Lady! …You’re identity has just been stolen.”) 

To protect yourself from identity theft and credit card fraud, you need to implement the following strategies and always consider those cards to be at risk. This second article in it’s four-part series goes over seven things you can do to help stop credit card fraud:

 1.Fill out your own credit applications. This is especially important for SBOs (Small Business Owners). Too many times, SBOs trust their bookkeepers to fill out all their credit applications. They naively hand over their social security numbers and business ID numbers because they trust their employees not to steal from them. Although some of these numbers a bookkeeper does need to know when handling your bookkeeping, your social security number and corporation number should be kept under wraps. Once they have this information, they can fill out any number of applications without your knowledge and easily forge your signature. A new creditor will not know if your signature is a forgery. Therefore, if you must have a bookkeeper fill out your information, have them fill out everything EXCEPT for your social security number, and other business related numbers, and sign all the applications yourself. By doing so, you lessen the chance of new credit being opened in your name (or your company’s).

2.Pull your credit report every few months. Even if you keep your ID numbers to yourself, you should still check your credit and business credit reports every three months. By doing so, you will see if there are any new accounts that should not be opened, and you can have them shut down immediately. You can also report to the credit agencies that no other accounts can be opened without speaking to you first.

3.Write “Check ID” on the back of the card. Many people make the mistake of never signing their credit cards. They assume that not signing their cards prevents embezzlers from forging their signatures. In actuality, by not signing your cards, someone else CAN sign them in your place. Retailers are often trained to only match signatures on receipts to signatures on cards. If the signatures appear to be the same, they do not need to ask for ID. By writing the words “Check ID” on the back of your card, any theft that occurs with that card is not your fault or responsibility. It becomes the fault of the store that failed to ask for your ID, thus giving you more rights should you need to pursue reimbursement in a court of law.

4.Use PO #’s with Employee Initials. If you cannot help but give out cards to employees to make business purchases for your company, make sure to encourage the use of Purchase Order numbers (PO #s). Many business cards will prompt retailers to ask for PO #s, which will show up on the receipt and your credit card statement. By having the employee list the PO # as the first two initials of their name, and the year, month and day of the purchase, you will know exactly who made the purchase and when by simply looking at the PO number. Not only is it easier to track and verify which employees made what purchases, but it assigns responsibility and accountability for every purchase thus reducing the risk that an employee will steal from you and be able to blame it on someone else. (An example would be EB70214 for a purchase I might make on Valentine’s Day of 2007. Be sure to include the year to avoid duplicate PO #s year after year.)

5.Check your Credit Card Statements: This is incredibly important for anyone, whether business owner or credit consumer. By looking over statements, you will catch any fraudulent charges instantly. Most credit companies only allow you to dispute fraudulent items within 30 days of receipt of statements. By not looking over the statement immediately, you are giving up your disputing rights and may get stuck with any fraudulent charges that have occurred in your name. So go over these statements carefully and contact your creditor immediately if anything is on there that should not be. 6.Keep your credit cards locked away. Just like locking away your checks, you should always lock away your credit cards. By doing so, you greatly reduce the chance that anyone can get hold of your cards and make unauthorized purchases. However, you still need to look at the statements for these cards since people can memorize or save credit card numbers and make purchases online without identity verification.

 These ideas are simple, but effective in stopping credit card theft. Although many people would say to also shred credit card applications, this really does not protect you since applications can now be filled out online. Only by protecting your important ID numbers and watching statements can you add Identity Theft off before it causes too much damage.

Check back next week for the third article in this series about Ghosts in your company. Believe it or not, they do exist in the business world. Also, check out Part 1 of this series regarding how to protect your checking account.

Article found @:

http://www.americanconsumernews.com/2008/02/protect-your-small-business-from-embezzling-bookkeepers-part-2-credit-cards-and-identity-theft.html

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Protect Your Small Business from Embezzling Bookkeepers Part 1: Checking Account

These days, too many SBO’s (Small Business Owners) trust their employees far too much. They trust them to be loyal and hardworking and to never, ever steal from them. Unfortunately, theft happens far more often then SBO’s realize, and it occurs repeatedly for years before anyone ever catches on. Bookkeepers especially are the most trusted of an SBO’s employees and usually in the best position to rob an SBO blind. According to the book “Executive Roadmap to Fraud Prevention and Internal Control, “the typical United States Organization loses 6 percent of its annual revenues to fraud.” SIX PERCENT! Of those who are caught, it is not a first-time event for the thief, but a repeated occurrence that can go undetected for years. Furthermore, if an embezzler is caught, they rarely ever pay back the full amount they stole, and they rarely ever serve more then a year in jail. So consider this, how much of your company’s income can you afford to have stolen?

 This article is the first of a four-part series on protecting yourself from bookkeepers. It is not written to make anyone point fingers or fire their bookkeepers. It IS written to protect SBO’s and to teach them the most common ways that bookkeepers steal. By simply changing up your involvement in your books, you can stop embezzling cold and make it incredibly difficult to be robbed.

 Here are ten examples of how I might steal from you if I were your bookkeeper, and ten simple strategies on how to protect yourself from my machinations:

 1.Always Open Your Own Bank Statement: If I am your bookkeeper and I am stealing from you, forging your signature is the easiest way. Stealing checks out of sequence and signing them to myself will soon net me thousands of your money in a very short period of time. If I were doing this, guess what I’m going to do when you give me an unopened bank statement. I am going to find the “evidence” and destroy it. In other words, I’m going to find the checks I wrote to myself and tear them up. You will never know the difference because the check will be out of sequence, and the only way for you to find out is if you spend thousands of dollars to have my bookkeeping entries audited. By opening your own statements and thumbing through the checks, you are going to catch every forged check before I get a chance to do anything about it.

 2.Lock up Your Checkbook: Not only is this good advice for protecting yourself from bookkeepers, but from other unscrupulous employees as well. By making your bookkeeper and employees ask you for a check whenever they need money, it keeps you involved and your employees accountable.

 3.Always Insist on Seeing Voided Checks or Voiding Checks Yourself: If I am your bookkeeper and I am determined to steal from you, I am still going to be eyeballing those checks and waiting for my opportunity even though you are locking the checks away and looking at the bank statements. One common way for me to do this is to get you to sign a check to me for “cash” to cover expenses, and then I say, “I had to void the check.” In actuality, I did NOT void the check. I pocketed it and I will cash it the next time I go to the bank. You write me a second check, and I cash that one too. When the check comes in on the bank statement, you think nothing of it because you write me checks for “cash” or “reimbursed expenses” all the time. It’s also your signature on the check…nothing out of place and nothing that alerts you to a problem because you just assume that you are looking at the same check “again” when you come across the second one. By insisting on seeing the voided check, I would have to write “Void” on it to prove that I am not lying. If Void is not written on it, then you need to write “Void” across it before you sign a second check. This way, I can’t dig it out of the trash later and cash it. (And yes, you DO want to keep even the checks you void in case you ever get audited. The IRS will ask to see voided checks as well as cashed ones.)

 4.Never let anyone but a partner be a signer on a checking account. If you have your bookkeeper as a signer on your checking account, go tomorrow and take them off immediately. If I am a signer on your check, that means I don’t need you to be with me to walk into your bank and drain your account. And guess what…the first time you ever piss me off enough to quit, that’s what I’m going to do. I will either write a huge check to myself and cash it right after I get my last paycheck, or I will walk into the bank, wipe you out, and disappear off the face of the Earth. Sucks to be you…cool to be me. I’m in Barbados toasting your naiveté while you are struggling to keep your business open. Cold hearted? Absolutely. Unfortunately, if your bookkeeper is a signer, you set yourself up for it. Get them off your account TODAY.

5.Never sign a check for a person or a company you are not familiar with. If I am a true embezzler, then I am going to “collude” with my family members and friends to rob you blind. How do I do this? Simple. I write checks to my family and friends and tell you that it is a vendor. You think nothing of it and sign the check. My friend/family member cashes the check and gives me the money, and I give them some cash for doing it. It all looks legitimate to you, and of course, I’m going to make it look legitimate before handing the books over to an accountant. Be wise. If you don’t know the person or the company, DON’T SIGN THE CHECK. Let the person or the owner of the company show up in front of you with proof that they did the work before you pay them. Most people will not want to lie to your face, although some will. Always ask for proof, and always make them come to you.

 6.Get a Deposit Stamp AND STAMP EVERY CHECK THAT NEEDS TO BE DEPOSITED: Another common theft practice is for a bookkeeper to open a company with a name similar to yours. For example, if your company’s name were “Smith’s Distributing,” as an embezzler, I would open an account called “Smith’s Distinguished Products.” Now, every check that comes across my desk where the payee has written “Smith’s Dist.” is now fair game. I can deposit that check into my dummy account, and I mark the corresponding invoice paid. If you purchase a deposit stamp with your bank name and account number along with the words “For Deposit Only,” that badly written check CAN ONLY be deposited into your account. In this manner, you can save time looking over all the checks and worrying over every deposit, while also keeping those checks where they belong. IN YOUR BANK ACCOUNT!!!

 7.Get Carbon Copy Deposit Slips: Get carbon copy deposit slips and only give one booklet to your bookkeeper each month. While they still can be conniving in the way they make deposits, it helps you keep track of how much money should have gone into your bank account and who’s check was deposited. Instead of check numbers, put down customer names on the deposit slips, and you can quickly and easily see who paid you, when they paid you, and when that money should have gone into your account. When the bank statement comes in, grab the booklet of copies and match your deposits up really quick. Anything that’s missing will alert you to possible theft and make you watch your bookkeeper that much closer.

8.HAVE THE COMPUTER WITH YOUR BOOKKEEPING FILES AUTOMATICALLY DO A DAILY BACKUP IN THE MIDDLE OF THE DAY TO AN EXTERNAL HARD DRIVE. Not only will this save any “original” data entry that your bookkeeper has done, but it will give you copies that are easy to go through should you suspect embezzlement. By handing your backup over to a professional fraud examiner, they can tell you fairly quickly if something “is not kosher.” Make sure your hard drive has a password that only you know, and when your bookkeeper splits, you won’t be high and dry with a wiped out computer and missing files.

 9.DEMAND TO SEE BANK RECONCILIATIONS: If you do not know your bank balance, this is a big warning sign that something is not right. Bank reconciliations usually take no more then half an hour to complete. If it’s been months since I (as your bookkeeper) have given you one, I am either not a very good bookkeeper, too busy to focus on what should be a priority, or I am stealing from you and I don’t want you to know how low your bank balance really is. By giving a bank reconciliation to you each month, you can look and see which checks and deposits have cleared and which ones are still outstanding, and you will know if too much money is going out and why. Make sure you demand these and make sure you give your bookkeeper the time to do them.

 10.Keep copies of all reports from your bookkeeper. If I am stealing from you, I am going to doctor my reports. Period. However, I am not going to doctor original reports that I am showing you because you will notice at the time that something is missing. For example, if I give you a copy of the check register right after writing 20 checks, you are going to notice if there are gaps in the check number sequence, and if there are voided checks. You are going to want to know why. I will give you an explanation (one that you will believe) and I will probably want that report back. Afterall, it really IS a bad idea to have your business’s financial information lying around. However, the next time I give you a register, I might have changed names or amounts on old checks and you won’t notice because you sign too many checks to remember everything. By keeping originals, you can occasionally pull out the old reports and compare them to new reports to make sure nothing has changed. It will alert you immediately if something is different, and it serves as excellent backup should your bookkeeper ever pull a “Delete-And-Bail” on you.

 Article found @:

http://www.americanconsumernews.com/2008/02/protect-your-small-business-from-embezzling-bookkeepers-part-1-checking-account.html