Category Archives: Internal Controls

Lessons Learned from an Email Hacker

  By E.T. Barton | January 17, 2012 - 10:11 pm | Fighting Fraud, Internal Controls, Money Saving Tips
37 Comments

Last week, I was the victim of an Email Hacker.  For the first time in 12 years of having my Yahoo , someone managed to get in and change my email password.  As I tried frantically for days to get control of my account back, I realized that I had made several small mistakes that – if I had known better – could have prevented the nightmare it quickly became.  You see, not only do I have a Yahoo email account, but I also have Yahoo Messenger, a Yahoo Website, a secondary Yahoo email, the customized Yahoo Page, but I am also on many Yahoo groups.  And while I LOVE Yahoo because everything can be accessed via one email and one password, you can imagine how frantic I was to suddenly not be able to contact anyone I know and tell them what happened.  Here’s what I learned, and what … Continue reading →

10 Ways to Make Your Office Go Mobile

  By E.T. Barton | January 10, 2012 - 10:03 pm | Decreasing Expenses, Internal Controls, Virtual Bookkeeping
8 Comments

The other day, I came to a stop at a red light behind a big white sedan.  As I sat there, waiting for the light to change, I noticed a funny shape in the passenger seat of the car.  To top it off, there was a small round thing where a GPS would usually be found.  When the light turned green, the driver reached over to the passenger seat and – to my surprise – made the funny shape disappear.  In that instant, I realized exactly what I was looking at, as well as what the round thing was:  a laptop on a tray in the front seat and a webcam attached to the windshield.  It was then I realized that during the three minutes that the light had been red, that driver had been doing business with his webcam, computer and Bluetooth earpiece.  Apparently, that was all he needed … Continue reading →

Employee vs. Independent Contractor

  By Robin E. Davis | December 27, 2011 - 9:32 pm | Internal Controls, IRS & Taxes, Spotlights
16 Comments

Many SBO’s may not realize their decision to classify a worker as an independent contractor rather than an employee can get them into serious trouble with the IRS and possibly the state. Employers pay a matching share of Social Security and Medicare, federal and state unemployment tax and worker’s compensation insurance.  In addition, employers must collect and deposit income tax withheld, and are required to file quarterly and annual payroll tax reports. That’s a lot of work and a lot of reporting.  It’s tempting to treat workers as an Independent Contractor to save the company the costs incurred as an employer.  Vendors, however, spare the company all these costs when hiring Independent Contractors to perform work – with only a simple to file at the end of the year. The IRS looks at three main characteristics to determine the relationship between a business and a worker:  “Behavioral Control, Financial Control … Continue reading →

I Think My Bookkeeper is Embezzling…

  By E.T. Barton | October 10, 2011 - 9:03 pm | Fighting Fraud, Internal Controls
22 Comments

Believe it or not, I hear this statement all the time:  “I think my bookkeeper is embezzling.”  Usually, this sentence is followed up with, “How do I find out?” If you’ve been reading this blog for a while, then you will already be familiar with the Diary of a Bad, Bad Bookkeeper series and you will already be familiar with Betty Bookkeeper and her twisted ways.  You will probably sympathize with “the Moron Boss” (readers words, NOT mine) and you will already have decided that “This could never happen to me.” The sad truth is…it happens ALL THE TIME.  What people see with the Diary entries is the inner workings of Betty’s mind.  They see that she has a wicked sense of humor, and that she’s very greedy.  What I don’t think I’m conveying very well, however, is that Betty is LIKEABLE.  Her boss adores her.  His troubles appear to … Continue reading →

6 Easy Things You Can Do Monthly to Prevent Financial Fraud

  By Alison Ball | September 28, 2011 - 10:32 pm | Fighting Fraud, Internal Controls, Spotlights
7 Comments

Alison Ball has been working at Intuit for 5 ½ years leading several different large scale educational initiatives for Accounting Professionals and creating the certifications programs for Intuit’s ProAdvisor Program.  Prior to that, she held various positions in Finance and Accounting, including being a QuickBooks Consultant, and a Controller at the local County Hospital.  You can find out more about Alison at http://www.linkedin.com/in/alisonball, or more about her QuickBooks certification training programs at http://accountant.intuit.com/training. ************************************************************************************************* The Scam: I once heard a story about a bookkeeper who stole several thousand dollars from a company she worked for. From my understanding, the bookkeeper issued accounts payable checks out of  (for real bills from real vendors), then took the home and used an IBM Selectric Typewriter to erase the vendor name and type in her own name. She was able to do this for a long period of time because she always did it for very small … Continue reading →