Solomon Bruce Consulting Blog

Thursday, June 27, 2013

Put all of your eyes on company profitability

     When the economy turns down, the natural reaction for many businesses is to cut costs-- cut advertising, cut part time employees, cut training, cut the flowers, free coffee anything that appears to be a frill or non revenue generating benefit.

       Perhaps another place to look is at the books.  If you are not the bookkeeper or do not use an external certified public accounting (CPA) firm, now is the time to have an outside set of eyes review all of your books to see if they are in order.

        A business that was having financial difficulties brought in an outside accounting firm to review the books.  BAD NEWS!  The bookkeeper had established several "shell" companies and had bilked the company out of $1 Million dollars, in the course of 4 years.  Well, the accounting firm found the scheme-- however, the business owner was out $1 Million dollars.

         If you are not personally doing the books, bring in some outside experts to review them for you.  The fees charged are small as compared to what may be found.  Hopefully, nothing will be found out of order--however, our experience is that normally something can be corrected to improve business operations.

         This applies to non-profits institutions, service clubs as well as businesses.  After all, it is your money-- make sure you keep it and is not being embezzled by a dishonest employee!


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