Would You Hire a Known Embezzler?
A business owner hires a known embezzler who needs a job. The person says he won’t embezzle again. He says he’s learned his lesson, and the owner believes him.
Unfortunately, the owner doesn’t have the procedures in place to keep temptation away. It’s similar to an addict being around drugs. The temptation can become too great.
When he steals a little and the owner doesn’t catch it, the cycle starts again.
Finally, after thousands of dollars are stolen, the embezzler is caught again.
Would You Hire a Known Embezzler?
I can’t answer that question for you.
If you choose to hire someone with a history of embezzlement, please put procedures in place that take away as much temptation as possible. Watch. Oversee. Question things when they don’t look right.
Your cash is too important to leave unprotected.
Three Simple Ways to Protect Your Cash
1. Never Give Your Bookkeeper Check Signing Authority
First, and critically important, never give your bookkeeper check signing authority.
If you do, you’ve given your bookkeeper the keys to the kingdom. Your bookkeeper can write any check, for any amount, to anyone, at any time.
And if you catch the bookkeeper stealing, you may have made the situation harder to pursue because you gave that person authority to write checks.
2. Look at Your Bank Accounts Online Every Day
Second, look at your bank accounts online every day.
This is like brushing your teeth. It’s a habit you must embrace.
Look at the checks, ACH withdrawals, deposits, and everything coming in and going out. It’s your cash. You need to watch over it and protect it.
3. Match Aged Receivables and Payables to Your Balance Sheet
Third, always match your aged receivables and aged payables reports at the end of the month to the balance sheet values for accounts receivable and accounts payable.
If they don’t match, someone may be using journal entries rather than the receivables and payables modules of your accounting software.
Why?
That’s a question worth asking immediately.
These Safeguards Take Less Than Five Minutes
These three things take less than five minutes a day to do.
They’re simple. They’re practical. And they can help protect your hard-earned cash.
Next week, I’ll write about more simple procedures you can put in place to reduce risk in your business.
How financially fit is your business?
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Spring/Summer NASBA sponsored group live courses (6 CPE):
Understanding Financial Statement Trends
- Tuesday, May 19, 2026 – Duluth, GA
- Tuesday, July 14, 2026 – Austin, TX (Texas approved for CPE)
- Thursday, July 16, 2026 – Dallas, TX (Texas approved for CPE)
- Wednesday, August 12, 2026 – Honolulu, HI (Hawaii approved for CPE)
- Friday, August 14, 2026 – Kona, HI (Hawaii approved for CPE)
Want to see whether Financially Fit Business is a fit for you and your clients?
What if you knew exactly how to communicate with your clients?
What if you knew the right words to use so your clients could better understand what you’re talking about?
Clear communication is critical, especially when you’re explaining financial information, business decisions, or next steps that affect your client’s future. Sometimes the issue isn’t the advice. It’s how the advice is communicated.
In this week’s episode of the Financially Fit Business Podcast, I talk with Leon Morales, CPA and Chief Energy Officer at DNA Behavior, about a new app called GODNA.ai.
Leon explains how GODNA.ai helps CPAs, advisors, and business owners communicate more effectively by helping them choose words that connect with the person they’re speaking to.
If you’ve ever wished there were a simple tool to make client conversations easier, this episode is worth your time.
Books/Audios that could help your business and you!
We Are as Gods was written by my mentor, Peter Diamandis, along with writer Steven Kotler.
Discover the exponential changes that are happening and how you can take advantage of them in the coming years.
Order on Amazon: https://amzn.to/4tO1FKT
