HVACR Business

OCT 2017

Help hvacr contractors master the critical components of business management.

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7 HVACR BUSINESS OCTOBER 2017 www. hvacrbusiness .com the owner since it was a direct payment and he didn't sign a check. It added up to a lot of money over the years. Here's what you can do to protect yourself: • See all of the cash withdrawals from your checking account. It's best to look at your bank balances on-line every day. You can see everything that is add- ed and withdrawn from your accounts. • Insist that everyone take at least a week of vacation. is way, someone else has to do that person's job and that is when you find discrepancies. Banks Can Make Mistakes On the flipside, here is a story of how a bookkeeper proved the bank was wrong. She prides herself on being accurate. She always checks her work and doesn't make mistakes oen. When she does, she's embarrassed and feels terrible (so she tries to avoid those feelings). e company gets many checks and a little cash in the door every day. eir bank deposits are oen an inch or more thick with cash and checks. When preparing the deposit, she counts the dollars twice and lists every check on the deposit slip. Most times, there is more than one deposit slip. She backs up her ad- dition with an adding machine tape and checks the amounts against the amount she enters into the adding machine. en, as an additional back up, she copies all of the checks, cash and deposit slips. When she gets the receipt from the bank, she staples it to the adding machine tape and copies of the checks, cash and deposit slips. en, she is confident that the deposit amount is correct. One day, however, the company got a notice from the bank that they were deb- iting their account for about $8,000 be- cause there was a mistake on the deposit. She knew there was no way that was possible, so she went back to the deposit in question and added all of the checks and cash from the deposit slip. It was right. In addition, she found the copy of the check that exactly matched the amount the bank was debiting to their account. She took all of her backups to the bank and showed them the deposit slip and the copies of all the checks and cash. She showed them her adding machine tape matching the amount on the deposit slip, and she showed them the copy of the check for the exact amount of the debit. is was proof they had deposited that check. e bank made the error. Somewhere and somehow they lost the check. It wasn't a mistake on the bookkeeper's part. e bank credited the company's bank account for the amount of the check. Here's what you can do to protect yourself: Always make an adding machine copy of your deposit and copy the cash and checks that make up the deposit. Yes, this takes time, however, it could prove your addition was correct. Banks do make mistakes. You don't want them making a mistake with your money. u See all of the cash withdrawals from your checking account. It's best to look at your bank balances on-line every day. 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. Contact her at ruthking@hvacchannel.tv.

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