HVACR Business

AUG 2017

Help hvacr contractors master the critical components of business management.

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7 HVACR BUSINESS AUGUST 2017 www. hvacrbusiness .com Obviously, the company didn't hire her. Also, the contractor did his colleague a fa- vor and told him about her conviction. Your interview process must include a background check. It's your hard earned money the bookkeeper will be handling. A clean background check gives you a lit- tle comfort. Also, for bookkeeping positions, re- quest a 15-year background check (the normal time period for background checks is seven years). ere have been embezzlers who are patient. ey wait the seven years to clean their normal background checks and are counting on prospective employers not to do a "deep dive" and look at the past 15 years. Watch Your Vendors Here is the reason you always ask your bank to send your bank statements home and review them before you give them to the bookkeeper to balance the bank account. A contractor was reviewing his bank statement and noticed a copy of a check to his auto repair shop that seemed higher than he remembered. e next morning, he brought the bank statement to the bookkeeper and asked her to pull the back-up for the check to the auto repair shop they used. e invoice from the auto repair com- pany showed $49, and he signed a check for the $49. e amount taken from the company's bank account on the bank statement, however, was $449. e micro- fiche picture on the bank statement also showed $449. Someone in the auto repair shop had altered the check and added $400! e contractor took the bank state- ment, the actual invoice for $49 and the check stub showing the check for $49 to the bank. ey credited his account for the $400 and went aer the auto repair shop for the funds. Most of us never imagine our vendors will steal from us. Yet, vendors' employees can steal just as easily as yours can. Had the owner not reviewed the bank statement and remembered the amount of the check he'd signed, the thief would have gotten away with $400. It's easy to do. Credit the contractor's account for the $49, which was owed, deposit the check for $449 and take the difference. e owner of the auto shop would never know. If in the unlikely event he caught it, the employee could say that it was an error and show him the original invoice. Always ask your bank to send your bank statements to your home. And, look at your on-line bank balances at least every other day. is is the first line of defense against the 1 percent who are professional embezzlers. Also look at the microfiche copies of the checks. You signed the checks. If something doesn't look right, you can spot it and ask the bookkeeper for backup. Another great reason for sending your bank statements home is you see all of the bounced checks, late payments, etc. associ- ated with your bank account. It's your hard earned cash. Watch what is going on with it. u Had the owner not reviewed the bank statement and remembered the amount of the check he'd signed, the thief would have gotten away with $400. Ruth King is president of HVAC Channel TV and holds a Class II (unrestricted) contractors license in Georgia. She has more than 25 years of experience helping contractors, distributors and manufacturers grow their companies. If you'd like free a copy of the bookkeeping test and answers, send her an email at rking@ontheribbon.com.

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