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Avoiding the Risks of Bookkeeper Embezzlement

Legacy Operations

As a business owner, what are you currently receiving on a daily, weekly and monthly basis from your bookkeeper?  Are you in communication about where you stand financially?  Are your bank accounts reconciled and financial reports processed at the end of every month? 

In watching the news and seeing how many bookkeepers embezzle funds each and every day, it is not surprising that most business owners do not even have a clue where they stand financially.  In fact, The Association of Certified Fraud Examiners estimates that in the U.S. alone, occupational fraud has cost employers $400 billion through larceny of cash, skimming and fraudulent disbursements. 

If you are not receiving timely financials, I hate to inform you that you are at risk for the above scenario.  You may trust your bookkeeper implicitly...in every embezzlement case this was true. 

I recently uncovered embezzlement by a receptionist of a medium-sized firm who was pocketing cash on a daily basis.  Why didn't the owner or the CPA catch this earlier?  Trust.  The owner stated "I would not in a million years have suspected her.  We had this relationship built over five years."

As a business owner, you should be reviewing your financials and asking questions, especially in small firms where one person handles everything from managing the office to doing the bookkeeping.  In this situation, we understand the difficulty of maintaining controls as you would in larger organizations. 

not only closes your books each and every month, but your CPA/Manager consults with you reviewing your financials, answering your questions and training you in areas you may not be familiar with.  In addition, they carry professional liability (E&O) insurance and employee dishonesty coverage.  Although they have never had concerns of bookkeeper embezzlement due to the fact that their employees do not have access to any client funds, it is a reassurance nonetheless. 

I highly recommend OSI for this very reason.  All of their clients are given a bookkeeper as well as a CPA/Manager and all employees are U.S. based.  They are very much about customer service and will speak with you over the telephone regarding the needs of your business.

If you are interested in knowing more, please send me an email and I will put you directly in touch with the directors.  I cannot say enough about this company.  In fact, take a look at their testimonials from current clients:   https://www.osibusinessservices.com/testimonials.html

Profile: Jillian Dearing

With more than 30 years of accounting and business experience, Jillian Dearing brings a wealth of knowledge and practical insight to the businesses she works with. Her background includes accounting, project accounting, government contracting, financial reporting, and business advisory services. Jillian is a Deltek Ajera Master Certified professional with extensive experience in the Architectural and Engineering industry, as well as government contracting and FAR compliance. Throughout her career, she has worked with organizations of all sizes, helping them navigate financial challenges and improve their business operations. As the founder of AE Advisory Services, Jillian is passionate about helping businesses work smarter through practical financial guidance, industry knowledge, and personalized support. She believes in building relationships, understanding each client's unique needs, and making accounting and technology work for the business. She can be found at Https://AEAdvisoryServicesLLC.com