Everyone here should know by now that I am a huge fan of delegation. If it does not absolutely need to be done by me, I delegate it. It helps me run my business more effectively and get more done. However, I am not a huge fan of embezzlement. While it is very important for me to know exactly what is happening in my business on a financial level, I do not want to be the one doing the bookkeeping. However, I also do not want to give my employees free rein of my financial information because then I run the risk of embezzlement. So, how do I delegate financial tasks to my employees so that I can save time and money but not risk being screwed over?
There are ways to delegate financial tasks without giving your employees access to the information that could lead to embezzlement. First, let’s talk about paids. All of my checks go to a locked PO box. They do not go to the office. I pick these checks up personally, and no one else is allowed to touch them. I never delegate the physical handling of money. I then separate the checks from the check stubs. The check stubs are sent to my assistant so she can log what has been paid and keep track for me. However, the physical checks are taken by me to the bank.
Now let’s talk about options with your banking institution. Some banks allow you to set up an “accountant’s view.” This allows you to create a user on your online banking account. They have their own email and access, but you control all the permissions. I give my bookkeeper the ability to view everything and download statements. However, she does not have access to make transfers, deposits, or withdrawals.
While many of my employees have been with me for many years, and I trust them, I do not think it is ever a good idea to give anyone but yourself and your spouse total access to your money and bank accounts. I have heard horror stories of embezzlement by those who were family and trusted employees. You just never know, and in my opinion, it is not worth the risk. So while I love delegation, make sure you are smart about it.
For more information on this subject, please listen to The Appraiser Coach Podcast Episode:
