Spot-check your accounting processes

93
taskmaster

Taskmaster

This article first appeared August 29, 2011.

 

Today I heard from a friend who is beside herself with anger after she caught a staff member stealing – or as the employee claims, borrowing – a few hundred dollars from petty cash.

 

This is more about a breach of trust than any great financial loss. The entrepreneur has been through the books and can’t find any more problems.

 

She didn’t want to hear it, but I told this entrepreneur was that she was lucky – lucky to have picked up the theft, lucky that it was only a small amount lost and lucky her business wasn’t damaged further.

 

Then I dashed back to the office and did a quick spot-check to ensure I’m not being taken for a ride by a member of my staff.

 

My spot-check is pretty simple – I get last month’s record of petty cash transactions, pick one and conduct a little audit.

 

If there is a record of $50 of petty cash for a lunch, is there a receipt to back this up?

 

Is there a description of who the lunch was with and why it was held (for example, with client A to discuss matter B)?

 

Did one person or two sign off on the reimbursement or removal of the $50?

 

Most of the time, everything stacks up straight away, or after a quick phone call to the person involved.

 

But knowing the boss does the occasional spot-check lets everyone know how seriously this stuff is taken.

Get it done – today!

Advertisement
Since 2010 StartupSmart has been Australia’s no.1 publication for the startup community and those interested in the startup movement globally. Publishing news, information and advice daily, and placing itself squarely at the centre of the government’s national innovation agenda, StartupSmart is a leading participant in the momentum that surrounds the world’s focus on technology, creativity and entrepreneurialism.
RECOMMENDED
FROM AROUND THE WEB