How to Make QuickBooks Enter Transactions For You

If you’ve already gotten OUR EBOOK: “How To Do A Year’s Worth Of Bookkeeping In One Day”, then you’ll probably already know how to do this step.  This excerpt is straight from that eBook with only a few modifications for those who haven’t read the book yet.

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Do you have a lot of transactions that repeat from day to day, week to week, month to month in your business?  What about repeating transactions that need to happen once or twice a month?  I’m sure you do.  After all, if you have to pay rent, or make a car payment, then you have a repeating transaction.  But what about invoices or sales receipts?  Do you bill any of your customers the same amount monthly, weekly, daily?  How about deposits?  Do you receive a specific preset amount of money on a timely basis (like an insurance payment, disability, social security, or just a flat fee for services rendered)?  What about vendor bills or credit card entries that are charged to your account every month?

All of these things, no matter how big or small, can be “Memorized” by QuickBooks.  In other words, you can set them up so that QuickBooks does the data entry for you.  It’s really easy.  All you do is set up the transaction as if you are about to enter it, then “Memorize” it.  Once you do, QuickBooks will automatically enter the transaction as a check, bill, invoice, deposit, etc., as soon as the date you preset passes.  Then, when you open QuickBooks after that date, you will be notified that the transaction(s) have been entered.  This one little step can save hundreds and even thousands of minutes in data entry time.

Here’s how to “Memorize” a Transaction in QuickBooks:

  1. Create your transaction, but do NOT press “Okay” / “Enter” / “Save and Close.”  (You can also pull up a transaction you’ve already saved if you don’t want to re-enter the information.)
  2. With the transaction open, Press Ctrl + M.
  3. The screen that pops up should look something like this:
  4. Choose “Enter Automatically”, then the frequency (weekly, monthly, quarterly, etc.) under the “How Often” section.
  5. Choose the next date you want the transaction entered (which is going to be the transaction for the NEXT month – Thus, you would choose February if you are entering January’s transaction).
  6. Choose the number of transactions remaining (which is useful for items such as car payments that are only paid for three years), and the number of days to enter the transaction in advance if you’re going to mail that transaction in the future.
  7. Click “OK” to return to the Original Transaction.
  8. Press Ctrl + Enter to Save That Transaction for THAT MONTH.
  9. That’s it.  The next time that entry needs to be entered, QuickBooks will enter it when you open the program.

Quick Important Note:  Once the transaction is Memorized, you can simply Close and then Reopen QuickBooks and QuickBooks will automatically enter ALL of those transaction from the first entry up to TODAY. That means, if you create an entry for January of 2007, but it’s May of 2010, this transaction will be entered multiple times until all of the transactions have been entered up until today’s date.  What this means for anyone who’s behind on their bookkeeping is that they only need to memorize one of each transaction and amount, then close and open QuickBooks to become instantly up to date.

Now go forth and take advantage of this fabulous tool. It will save you OODLES of time!

Let me know how it works for you.

Diary of a Bad, Bad Bookkeeper (Day 14) – The Carnage Begins

Well Diary,

Betty Bookkeeper HeadshotToday was the day… the FIRST day that I stole from the company.  Today, I forged my first check with the owner’s signature. I would have done it a couple days ago – as soon as I found out the owner doesn’t open the bank statements, and in fact expects me to do it – but the owner suddenly changed his pattern. Instead of staying out of the office, like he had done every day of the first nine days, he decided to stay in the office to “take care of some things.” Since I wasn’t expecting it, I decided to wait to see what it was he needed to take care of. Luckily, it wasn’t anything that had to do with me or the books.

Well, even if it did have to do with the books, he wouldn’t have found anything. I’m doing a very good job right now. After all, I have to prove my worth somehow.

I wrote the check for $100. I know, it’s not much, but it’s a start. Just something to see if he notices that I stole it. I’m sure he won’t notice since I took the check out of sequence. But if he does, I can say it’s for the Petty Cash Box that he doesn’t have. If he doesn’t notice… well then, I’m going to suggest he GET a Petty Cash Box. After all… “it makes MY job so much easier if we can have cash around for emergencies.” (If this was a video, then right now is where I would do the evil laugh…)

And there’s no worries about the bank clearing it.  Banks don’t have enough time to check every signature.

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To Stop The Carnage Caused by Forgery:

Unfortunately, when superhero_edited_no_maska bookkeeper forges a check, the only way a Small Business Owner is going to know is if they open the bank statements first.  And…the general rule is: He who opens the bank statement is the one who can hide or destroy the checks. So if an SBO opens the bank statement, they will get a chance to find the forged check before it can mysteriously disappear.

When yo do open the bank statement, check that all signatures are your signatures.  Take a second look at anything that was signed by a signature stamp or a doesn’t look like your signature.  Also, look for check numbers that are obviously way out of sequence or missing a check number because there’s a good possibility that it’s a forged check.

If your bookkeeper did cash a forged check, contact your bank and inform them that the check was forged.  Sometimes, they will be able to pull the funds from whatever bank account they were deposited in and put those funds back in your account.  But – more than likely – once the check has cleared, you can’t get the money back.  So be vigilant in opening the bank statement BEFORE your bookkeeper does.

Click Here to Read More Bad, Bad Bookkeeper Diary Entries

Laptop Features to Consider For Small Businesses

The following is an excerpt from our eBook, “How to Start a Lucrative Virtual Bookkeeping Business.”

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One of the things I see a lot of when it comes to bookkeeping is laptops…lots of laptops.  Some work incredibly well (whether for bookkeeping or anything else) while others work horribly.  Thus, I have compiled a list of features to consider when shopping for any laptop, whether for bookkeeping alone, or for business in general.

(If you have any further recommendations, please leave them in the comments so that other readers will know what to consider.)

  1. Must-Have Features For Your Bookkeeping Laptop:
    • A DVD Burner:  Don’t be cheap and skip the DVD burner in lieu of a CD Burner; they are not the same thing.  CD’s can only burn a fraction of the information a DVD can burn, and you will want to give your clients DVDs when you back up their work.
    • An SD Card Slot:  This will come in handy whenever you need to transfer digital files from a camera to your computer.  Although it may not make much sense now, you’ll be glad you have it later.
    • Bluetooth Access:  It just comes in handy.
    • Wireless Access: You will want to be able to get on the Internet anywhere, especially coffee shops.  In fact, you may even consider signing up for a monthly service from AT&T or Sprint so that you can get Internet access from the middle of a field, if you so chose.
  2. Optional Features For Your Laptop To Consider:
    • A 10-Key Keyboard:  The reason I have NOT made this a “Must-Have” feature is because this is actually a “Preference” choice more than anything.  Yes, it can be incredibly handy to have your 10-Key right on your keyboard when you open your laptop, but the problem is, a Laptop with a 10-Key Keyboard is a very heavy laptop.  It can add an extra 5 to 10 pounds of weight, and it can add a couple hundred dollars to the price tag.  If you buy this kind of laptop, you will also probably end up investing in a bag with wheels just to tote the thing around.  So now, you have a heavy laptop with a heavy AND bulky bag that you have to schlep from house to car to office and back.  On the other hand, you can buy a 10-Key Keypad that plugs directly into your laptop for a cost of $10 to $20, or a Bluetooth 10-Key Keypad for $30 to $40.  These are compact, lightweight, and can fit right in the pocket of any computer bag.  On top of that, you can buy a computer that weighs as little as five pounds, and now taking your computer with you is no longer a hassle.  So, make the decision for yourself on how important that 10-Key is before you buy a laptop.  (Notice, the Kensington keypad-with-calculator to the left has a calculator screen on it as well, which allows you to quickly tally numbers without having to access your computer.)
    • LightScribe Burner:  If you’ve never seen a Burnt LightScribe CD or DVD, you are missing out.  This feature allows you to burn any picture or text on the top of a certain type of CD and DVD, and can really give you (and your business) a very professional image.  Imagine giving your clients a Backup Disc with their Company Name, Logo and date on it.  You will convince your Clients you spend a lot of time and money to produce high-quality products, even when you don’t.  This feature does not come standard on all laptops, but is usually only $25 more if you’re buying a “custom computer.”  So, if you want to give an appearance of being Professional and “Tech-Savvy,” add this feature…you won’t regret it.  (Because quite frankly, if you’re not doing it now, your competitors will be doing it soon.)
  3. My Laptop Recommendations:

 

  1. AVOID AT ALL COSTS:  One of the benefits about being an Independent Bookkeeper is that you see a LOT of computers.  As such, I would NEVER recommend a Compaq (even though it’s made by HP) or a Gateway.  I’ve seen major issues with Compaqs, and I’ve heard Gateway has the worst customer service when a problem arises (this from a very computer savvy person).  Acers are super-cheap options, but there’s a reason for that…they won’t work well with a whole lot of business programs.  The IBMs I’ve seen have been heavy, awkward and incredibly expensive, but aren’t really any fancier than a Toshiba.  Dells are great because they’re inexpensive, you can customize them, and they have decent customer service, but I’ve seen more Dells freeze up than not and then you have to do a “hard reboot.”  But again, your laptop choice is always a preference thing.
  2. ALSO AVOID: Mini Netbooks.  While Netbooks are a fabulous deal price-wise, they are not good choices for a business.  For one thing, the keyboards are small, which makes it hard to type (and EXTREMELY curse-worthy if you type a lot).  For another, there are usually NO DVD/CD Burners, only USB ports.  And for a third, without a DVD drive, it is nearly impossible to get many computer programs on the laptop – including QuickBooks.  I have tried to download QuickBooks onto computers from the internet before, but even with the QuickBooks key code, you really need the disks to install the program.  So skip the Netbooks for your business and go with something larger.
  3. To find the best price on a laptop: If I don’t buy my laptop from the manufacturer’s website, then I like to go Best Buy or Office Depot.  They often have incredible sales and decent financing.  On top of that, you can usually take your computer to Best Buy if you need to get something fixed, and Office Depot now offers free computer check-ups whether you buy from them or not.  Check their catalogs regularly and you will be amazed at the deals.

The Best Printers for Small Businesses

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The following is an excerpt from our newest ebook “How To Start A Lucrative Virtual Bookkeeping Business” which we are launching on June 30th, 2010 and are currently pre-selling for 50% off. While the advice is intended for small bookkeeping business owners, in my opinion, it works for anyone who runs a small business.  I would love to get your feedback and hear any comments on printers you love.  So, if you have any feedback, please leave a comment below.

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  1. Get a Multi-Function Printer.  You want to look for a Multi-Function Printer versus a regular printer because like I said before, you will have limited space.  You want it to have a “Flatbed” because you will be scanning paperwork.  You also want it to be able to “Feed” a lot of papers through the scanner at once because you will be faxing a lot of paperwork. In fact, the feed is one of the most important features to look at… don’t skimp here.  A wimpy feed will mean lots of paper jams, lots of frustration, a few choice curse words, a whole lot of equipment violence, and eventually, a whole lot of time wasted manually feeding your pages one at a time.  (Which sucks, believe me!)  Save yourself the headache and pony up the extra $10-$50 for a better feeding option.
    1. a. Features to Look for in a Multifunction Printer:
      1. i.      Laser Printers versus Inkjet Printers:
  • Laser printers mean toner cartridges.  That is a lot more expensive then Inkjet cartridges, and usually larger in size, but they print faster, and they print more copies before they have to be replaced.  In addition, the printer costs more money, especially if you go for the Color Laser printer, but the print quality is excellent, and if you don’t mind pony-ing up $100 every time you have to buy replacement cartridges, then a laser printer is a great option.
  • Inkjet Printers:  Both the printer and the cartridges cost less….period.  The quality can be really good, but you will buy cartridges more often (although the prices can be as low as $5 each).  You will probably also have to do a “head cleaning” more often on an Inkjet Printer, but this is the more affordable choice when starting any new business.

  1. ii.      Replacement Cartridges:  Before you buy any printer, always pop over to the cartridge aisle and see how much the replacement cartridges are.  You may also want to check a website like www.123Inkjets.com where you can save as much as 80% on the generic versions.  Just the cost of the cartridges alone could be a reason NOT to buy whatever printer you’re looking at, no matter how cheap the printer is.  For example, Lexmarks are generally the cheapest printers you can find, but they’re cartridges cost just a little less than the printer itself.  On top of that, the cartridges don’t print a whole lot of documents before the cartridge has to be replaced – so these are only good deals for people who don’t print a lot.  You…as a VIRTUAL bookkeeper… ARE going to print – a lot.  So take the price of the cartridges seriously.
  2. iii.      A Good Feeder:  This is a must-have for a bookkeeper.  You are going to be faxing, scanning and copying a lot of documents at once.  If you have a wimpy feeder, then you can expect paper jams or an early death to your MFC printer.  Therefore, make sure you look at how many papers you can feed at once.  This information will be listed in the printer’s details or on the box itself.

  1. iv.      A Flatbed Scanner:  A lot of Business Owners think that having a machine with only a feeder (like a fax machine) is a great low-cost option, but the truth is, it’s a bad option for bookkeeping.  Bookkeepers need to make copies of checks, bills, tax forms, books, and all sorts of odd-shaped papers.  It’s a whole heck of a lot easier to have a flatbed that can handle odd shapes and sizes so you can scan portions, if necessary, and put the scans back together on a computer.  Therefore, get both the feeder and the scanner model.

  1. v.      A Fax Machine:  You’d be amazed how many multi-function printers are still made without a fax machine.  But the truth is, a fax machine is a Virtual Bookkeeper’s best friend.  You will be sending a lot of paperwork to your clients via email or fax, and having a fax machine lets you do both.  Be smart and check for this feature right from the beginning.

  1. vi.      All in all, we prefer the Brother printers.  The cartridges are cheap (at least in comparison to other toner and inkjet cartridges), it feeds paper fairly quickly, and it prints an excellent quality at a good speed.  However, keep in mind that not all Brother Printers are created equally.  The cheap ones don’t feed a lot of paper at once.  So, look for something that looks like these (notice the feeds are angled upward to hold more pages):

But avoid ones that look these because these feeds aren’t that great (notice the feeds are flat, and thus usually fit and/or feed fewer pages).

A Good Rule-of-Thumb is:  The more pages they feed at once, the better.

Bookkeeping Money-Saving Tip # 14: Making Money with Your Website (Part 2)

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In the last BOOKKEEPING MONEY-SAVING TIP # 13: Make Money With Your Website (Part 1), I discussed two ways that you can supplement your income with your business blog.  As promised, here is another tip that anyone can do to make money with their business website.  However, today I am only going to focus on one main money-making idea because it is such an important and valuable way to make money.  It is your business blog.  With a business blog, you are basically getting free advertising (for really only the cost of your time to write an article), you are creating a relationship with your customers (whether you know it or not), and you can build a community that will only help your business in the business world.  Here’s why the Business Website Blog is so important:

Blogging: If you haven’t noticed lately, one of the biggest trends going on in businesses today is blogging.  It seems like anyone and everyone has a blog, and even an eBook.  There’s a reason for that.  (In fact, there are multiple reasons for that.)  It’s one of the cheapest ways to advertise and to build lasting relationships with your customers – and since you’ll want to save money on advertising…

Having said that, here are some of the most profitable reasons to add a blog to your website:

  1. Blogging is the Sharing of Free Information AND a Person/Company’s Personality: I don’t care what anyone says – Companies have personalities.Maybe that personality is to be “a Big Bad Corporation” or maybe “an Environmentally-Friendly Non-Profit.”  Either way, there is a mission involved and a way that company has of sharing information.  Blogging is the best way for any person or company to share their personality and information, while also educating a customer about the products they sell.  It doesn’t necessarily matter what information you share or how you share it (i.e. words, podcasts, videos, etc.), so long as you share who YOU and your Company are in the process.
  2. Constant Blog Updates Lead to Lots of Traffic: New blog information should be added on average of once a week or more, which means the website is constantly changing.  Since the website and blog are constantly changing, people have a reason to return to the website again and again, which reminds people that there are products to buy.  Constant visits increase the likelihood of “Impulse Purchases, which obviously helps the company’s bottom line.  (On the other hand, websites without blogs are only visited when people are looking for something in particular to buy, which can end up being “rarely.”)
  3. Lots of Traffic Leads to Popularity and New Customers: The more often people visit your blog, the more popular your site will become.  The more popular your site, the higher your website will rank in a Search Engine’s Ranking List.  That means when a customer searches for your product, you have a better chance of being the website that Google or Yahoo! recommends.  The end result is that new customers will begin to visit your website as well, recommended both by your current customers, and the Search Engines.  And thus…
  4. New Customers Leads to New Additional Sales.
  5. Finally, Customers Will Keep Coming Back: As crazy as this might sound, people want to buy from people they know and feel comfortable with.  Even if they don’t buy from your website every time they visit, every blog you post cements you as an “Expert” in their mind, and someone they “just like.”  Thus, they will come to you first when they need advice regarding your industry or when they need your products.  Every blog – whether you make money right away or later – will lead to building customer relations and eventual sales.

Thus, if you haven’t started a business blog, you really need to consider it.  Especially because a blog is the best way to bring traffic to your site again and again, and it will help you make even more money later on.

Come back next week as I talk a bit more about adding Google Adsense to your blog, and how to use it correctly.

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Quick Note: In the month of September, I will be doing a very intense 30-day online workshop on How to Turn Anyone’s Business Blog into a Money-Making Blog. The intent is to teach people how to supplement their income no matter their industry. The cost is $20 for the online workshop, and everyone who joins will receive a $20 gift certificate to Elance.com so that they can hire help for any aspect of their business or website development.

If you would like to know more, you can click the “Workshop” tab above, or Click Here.

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Diary of a Bad, Bad Bookkeeper: Deletions and Voids

Betty Bookkeeper Headshot

Dear Diary,

Let me just premise this entry by saying — crap crap crap crap crap.

I got a phone call from the accountant today.  It’s tax time, and the accountant wants to meet with me to go over the books.  Since I’ve never worked with this accountant before, I have no idea how closely they are going to want to look at the books.  I can’t help but fear that the accountant is going to figure out what I’ve been doing if he looks too closely at the books.  So I was in full blown panic mode all day.Betty Bookkeeper Headshot

So after thinking about it, I did what I could today to clean up the books.

I started by voiding out some of the checks and deposits that I had made, hoping that would be enough.  But then, when I realized that the checks were recording in the check register as “voided checks”, I had to rethink that strategy.

My solution:  I began deleting the checks and deposits instead.  That way, they disappear completely from all registers.

But then another problem popped up.  By deleting the checks and deposits, the bank balance began to change.  So, I went back and made sure to delete just enough to keep the balance close to what the original balance was.  Hopefully, it will be enough to fool the accountant.

Hopefully the accountant is a fool…

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How to Spot This Problem:

superhero_edited_no_maskWhether you have a good bookkeeper or a bad bookkeeper, deletions and voids are always a part of bookkeeping.  Mistakes happen and bookkeepers have to find and correct those mistakes to make sure their books balance.  One of the biggest benefits and downfalls of various bookkeeping programs like QuickBooks (especially QuickBooks) is that many of the programs make it really, really, really easy to do voids and deletions.  In fact, just doing a “Ctrl + D” while in any facet of QuickBooks will instantly delete that item.

Having said that…let me point out that bad bookkeepers will do an excessive amount of deletions, especially after reconciling the bank accounts.  Finding those deletions and voids are an excellent way to know if there is a problem with your bookkeeper.

While I am not familiar with EVERY bookkeeping program, I do know QuickBooks.  And if you have QuickBooks, it is very, very easy to find those deletions and voids.

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QUICK NOTE:  Now if you do suspect your bookkeeper of embezzling, the easiest thing to do would be to take a previous backup and “Restore It” to your QuickBooks program.  By doing this, you wipe out any and all changes that might have been made.  This is NOT a good idea if you want to know what your bookkeeper might have changed.  Instead, make a backup copy of the current program before restoring anything else, that way you can always go back and look more closely at any changes that have been made.

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Now, if you do have QuickBooks, finding these deletions are super easy.  All you have to do is go to Banking – Reconcile.  By doing so, you will then see a screen like this one with a “Locate Discrepancies” button:

By clicking on “Locate Discrepancies”, you can see ALL CHANGES THAT HAVE BEEN MADE SINCE THE LAST BANK RECONCILIATION.  If the account has never been reconciled, then nothing will appear here, which indicates a whole other set of problems.  If the account has been reconciled, you can find a list of every change that has been made and what the change was SINCE THE LAST RECONCILIATION.

After you have your list, simply “Undo (the) Last Reconciliation” to see what deletions were made in the reconciliation period before that.  You can keep doing this all the way to the very first reconciliation, and thus get a a fantastic picture of what has been deleted, voided and changed without your knowledge and after the reconciliation.  Remember… excessive deletions, voids and changes can mean that there is a problem with the bookkeeper…not necessarily that they are embezzlers so much as that they make a lot of mistakes.  But again, keep in mind that all bookkeeping has a certain amount of small mistakes that are caught every month when the reconciliations are done.

Diary of a Bad, Bad Bookkeeper (Day 40) – Stealing the Boss’s Identity

Betty Bookkeeper Headshot

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I got a new credit card today. Well, technically, I got a new “company credit card” today. When the boss wasn’t around, I went ahead and called his credit card company and told them we had lost his company card and needed a new one. They asked me for all of the usual identifying information – social security number, mother’s maiden name, address, phone, account number, etc. – and of course, I gave the guy on the other end of the line all of that information. I then told him that I wanted to change the password question “because the last bookkeeper got fired, and we need to protect my boss’s identity.”

The guy at the credit card company didn’t even miss a beat – after all, companies get new bookkeepers all the time. “Which question would you like?” the guy asked me. “Do you want a question about your high school, pets, favorite cities…” and on and on and on.

“How about the question about pets,” I answered innocently.

“Okay. What is your pet’s name?” he asked.

I thought really quickly, then answered, “Moron.”

“Excuse me,” the guy on the phone said.

“My pet’s name is Moron,” I repeated sincerely. What I wanted to add was – “and Moron’s my boss” – but I managed to hold my tongue… barely. It was so hard.

“Okay. Moron it is,” the guy said in a serious tone while clicking away at the keys on the other end of the phone.  “Anything else I can help you with?”

“Oh. I almost forgot,” I added. “Our office has moved. The address I gave you was for the old address. The new address and phone number is…” and then I gave him my home address and personal cell number.

Again, I heard clicking on the other end of the line as the poor dupe updated my boss’s “new information.” When he was done, he said, “You should get that credit card in the mail by…”, which turned out was today.

So, I swung by my house and checked the mail during lunch. The card was already there. So I went ahead and treated myself to lunch – on the boss, of course. After all, he doesn’t pay me nearly enough for all the excellent work I do for him. And since the boss never opens the mail – especially that particular credit card bill– what he doesn’t know what hurt him.

I wonder what I’ll buy tomorrow… Maybe some new earrings. I’ve always wanted pearls…

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How to Prevent this Kind of Bookkeeper Theft:

You would not believe how incredibly frustrating it is to call into your credit card company and find out that all of your password information has been changed. Not only can your password info be changed, but some people even go so far as to change the “mother’s maiden name” question. Of course, the simplest way to stop this is to catch it early. You can do so by doing the following:

  • Open your credit card statements, or check your transactions online regularly. If anything seems questionable – no matter how small or large – call the credit card company immediately and ask them how many cards they’ve sent out. You can also verify that your security information is still what you originally created.
  • If they tell you your password information has changed, be sure to throw a high holy conniption fit and demand to speak to an account manager or “their boss.” Get this account closed immediately because whoever has your card can still make purchases even while you’re on the line. They will send you a new credit card with a new credit card number within a matter of days.
  • Get copies of your three credit reports as soon as you possibly can because – quite frankly – if your private information has been changed, there’s nothing to keep them from signing up for more credit cards at vendors you may never even have heard of. But, the good news is that every single one of those stolen cards will show up on your credit reports!, but not always all three of the reports, which is why you should spend the extra money to access all three. (In fact, for $14.95 a month at Transunion, you can actually access those three reports and credit scores for free every month. It may be worth it if you ever find yourself a victim of identity fraud.)
  • If a credit card company calls you and says there is questionable activity on your account, get online immediately and see what they are talking about. If they are contacting you, they are probably seeing something they’ve never seen on your account before. So even if you have your credit card on you, it never hurts to double check whatever charges they’re concerned about.
  • And lastly, make sure you know where ALL cards are at all times. I once had a client who ordered a card for his wife – a card which never arrived. It turned out, someone stole it from his mailbox and was shopping with it in the next town and my client never knew. Luckily, I caught it with the very next credit card statement when I asked for receipts that matched the charges, and we realized immediately what had happened. So even though the thief had managed to steal more than $7,000 in 15 short days, my client was not liable for a penny, especially because he disputed the charges right away. (Which is another good reason to check those statements every month.)

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Click Here to read the Previous Entry: Diary of a Bad, Bad Bookkeeper (Day 30) – The Double Payday Scam

Click Here to Read the Next Entry:  Diary of a Bad, Bad Bookkeeper (Day 55) – The Sister Company Scam


Diary of a Bad, Bad Bookkeeper (Day 112) – Theft by Signature Stamp

Betty Bookkeeper Headshot

Dear Diary,

Today the boss went on vacation and guess what he gave me…the Signature Stamp.  I couldn’t believe it when he handed it to me.  I think my smile was from ear-to-ear.  Doesn’t he realize how stupid it is to give me the signature stamp?

“Are you sure you want to give this to me?” I asked all innocent like.  In the back of my mind, I was already calculating how much money I might be able to get now that I had this new stamp.

“Of course.  I trust you,” he told me with an amused little smirk.

That smirk told me everything I needed to know.  My question had just convinced him that I was the sweet innocent young lady he had come to know so well.  Because – fool that he was – he sincerely believed that everyone was as open and honest as he was.

I almost felt bad about stealing from him.  Almost.  But then I would remember that I was making less money than everyone else in his company…everyone except the receptionist.

“I don’t know.  That’s a lot of responsibility,” I commented in the best hemming-and-hawing voice I could manage.  “I really don’t want to let you down.”

“It’ll be fine,” he assured me with a light pat on my shoulder.

Then he strolled out of my office.  An hour later, he left the office for good.  He was off to the Caribbean for the next two weeks.

I waited an hour after he left just to make sure he wasn’t coming back.

And then…

Over the next week…

  • I signed some IRS paperwork with that signature stamp.  Whether or not the IRS paperwork is accurate…?  Who cares.  At least it’s filed.
  • I opened a new cell phone account with his signature stamp…got the “Unlimited Text and Talk” package…for my whole family.  My daughter may only be 8, but she loves her pretty new pink cell phone.  And of course, I love my new iPhone.
  • I also got a new Business Gas Card Account.
  • I downloaded a new bank account application from online, signed it with his signature stamp and faxed the paperwork back .  Got instant approval.
  • I sent out several applications to local vendors to get lines of credit.  They all got approved.  I now own a chainsaw from the local hardware store (because I can), an electric lawnmower from Lowes, solar panels for the garden from the local garden supply store, and $300 window blinds from Home Depot.
  • I ordered a bunch of magazine subscriptions in his name and sent them to my house.  (I really love Cosmo.)
  • I walked into Office Depot and paid for a whole bunch of office supplies with a blank company check and his signature…including a new printer for my kids and a portable scanner for… I guess for the “heck of it.”
  • I went to the bank with a check made out to Cash.  (That was an easy $500.)
  • I paid my new car’s DMV bills with his check…and got my husband’s car smogged.
  • I signed a few petitions in his name.  He’s now a Democrat that actively supports breast cancer funding.
  • I also got a PO Box in his name at the local Mailboxes Etc. office.  All that new paperwork will never even come to the office.
  • …And I did a whole bunch of other stuff, although I can’t remember them at the moment.

You know what the best thing is, Diary?  When he comes back, he’ll have no idea what I’ve done.  Most of the paperwork will go to the new PO Box I opened in his name.  And even if he comes back and asks to see the bank statement for the first time ever, he still won’t know what I’ve done.  I can explain away the DMV and car-related bills as “work needed on one of the company vehicles,” the Office Depot check as “supplies we needed” and the Cash check as “Petty Cash” issues that came up.  All the rest…well… there’s just no way he can find out about that stuff.   At least none that I can see.

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How to CATCH this Kind of Theft:

You can’t.

You can’t catch this kind of theft because you’ve given them a free pass to steal from you.  And since your bookkeeper has access to all of your most personal information – social security numbers, DOBs, Tax ID Numbers – you’ve just made it super easy for them to take anything they want in your name.   That means – YOU are responsible LEGALLY for EVERYTHING they’ve done.  The IRS says you owe money, and they have your legal signature on file…then you have to pay it or try to fight it.  It’s your signature. And if you lose, you have to pay penalties and interest on top of the paperwork they’ve filed.

Okay – you CAN catch this kind of theft, but you’ll need a professionals help after the fact to find out what that bad bookkeeper did.  Now you can PREVENT this kind of theft by NOT giving your signature stamp to anyone who has access to your checks, credit cards, or any kind of personal information.  Maybe that person is your office manager or receptionist.  Maybe you can give it to your accountant and make your bookkeeper go to them to get your signature.  Either way, by adding a second person to the mix whenever you go on vacation, thus giving the second person you’re signature stamp, you are taking steps to actively prevent embezzlement while you’re away.

AND REMEMBER – IF YOU EVEN SUSPECT BOOKKEEPING FRAUD, ASK YOUR ACCOUNTANT FOR HELP.  You’re not crazy.

Diary of a Bad, Bad Bookkeeper (Day 30) – The Double Payday Scam

Dear Diary,

Today was payday – the second since I’ve been here.  I figured it was about time to test the Double Payday Scam – to see if my boss would actually catch me.

So, I started the day by doing the Payroll.  Just like two weeks ago, I created and took all of the paychecks to the boss to sign.  He signed them, with only the occasional request to see a corresponding timecard…then he signed mine without question.

I took the checks back to my office and set mine aside.  Then, I printed up another paycheck that I took back to him.

“What’s this?” he asked me, glancing briefly at my double payday.

“It’s a replacement check.  I double-checked my income and realized that I had entered my withholdings incorrectly, and QuickBooks took out too much in taxes.  So I voided the other one and reprinted this one.”

“Okay,” he said, shrugging and then signing my check.

And just like that – Double payday.  If he had asked me to produce the voided check, I would have gone back to my office and voided the first check… but since he didn’t, he’ll never know.  Even if he opens the bank statement (which let’s face it, he probably won’t), he’ll see the extra paycheck and think he’s just looked at the same check twice.

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How to Catch the Double Payday Scam:

All a small business owner has to do to catch the Double Payday Scam is to ask to see the voided check, or to insist that you will void all checks personally.  They can then refile the checks, and you have protected yourself… it’s that simple.

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Click Here to Read the previous entry:  Diary of a Bad, Bad Bookkeeper (Day 14) – The Carnage Begins

Click Here to Read the Next Entry:  Diary of a Bad, Bad Bookkeeper (Day 40) – Stealing the Boss’s Identity

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Diary of a Bad, Bad Bookkeeper: A Cautionary Embezzlement Tale for Small Business Owners Everywhere

Meet Betty Bookkeeper 

She’s embezzling thousands of dollars a month from her unsuspecting Small Business Owner boss. Her boss has absolutely no idea because she seems like such a good woman. It’s that trust which makes it so tempting and so easy for Betty to steal.

Do you have a Betty Bookkeeper? Or are you a Bookkeeper who worries about protecting your reputation? Then this book is for you. This book is a work of fiction with some non-fiction advice. It was originally written to help small business owners spot and stop embezzlement in their small business companies.

An Embezzlement Book for Small Businesses

While there are tons of books about stopping embezzlement at a corporate level, there are very few that talk about embezzlement on a Small Business scale. This book offers:

16 common bookkeeping scams committed against small businesses and how to stop them.  A brief overview at the end of how to do a Quickie Audit and see if your current bookkeeper is a “Betty Bookkeeper.”
Some of the common business scams include:

The Double Payday Scam The Phishing Scam The PayPal Weak Link The Shell Company Scam The Payroll Tax Scam …And many more.
If you have EVER worried that your bookkeeper is stealing from you, or if you are a bookkeeper who wants to protect yourself from being accused of embezzlement, get this book and put the practices to use. It could save your lifestyle.

WARNING: This book will scare you silly if you are a business owner. Betty has a twisted sense of humor and is not afraid to use it. At roughly 15,000 words, it is a fast read that will either make you laugh or cry.