How Not To Get Robbed By Your Most Trusted Employee

  1. Grow from seven to eight or more figures
  2. Survive tough times (like COVID/recessions/etc.)
  3. Sell
  4. For non-profits, this means everyone stays underpaid and overworked and you never gain ground on your vision.
  1. Create transparency into an organization’s financial situation
  2. Guide allocations and financial decisions.
  3. Provide information for analysis and management.
  4. Define the processes for how money moves and is tracked into, within, and out of the organization.
  • Culture
  • Communication
  • Segregation of Duties
  • Record Keeping
  • Budgets
  • Reporting
  • Borrow company equipment
  • Ask, “We talked about business didn’t we?” when the dinner check comes.
  • Leave passwords on sticky notes on their computer monitors
  • Keep the petty cash in an unlocked drawer that is opened in front of visitors.
  1. Create a list: Sit down (individually or with a team). Set a timer for 15 minutes. Create a list of all the financial policies and procedures that you are aware of. Don’t describe them. Just name them. It doesn’t have to be exhaustive.
  2. What is easiest? From that list — underline the simplest or easiest ones to describe.
  3. What is most important? Also from that list, circle the most important or critical ones to write/record.
  4. Delegate and do: Everyone picks one of the items to work on. Begin with one that is easy and (ideally) important. Set a deadline. Get it done.
  5. Meet and approve: At the deadline, meet, compare notes, edit and approve.
  6. Communicate: Make this accessible to those who need it. A shared computer file. A 3-ring binder.
  7. Rinse, repeat.
  • Ensure your bookkeeper and your accountant are different people.
  • Unless you regularly undergo an independent audit — don’t use a bookkeeper who is employed by your accountant.
  • Have a separate tax accountant from your day-to-day accountant.
  • Separate who mails checks for invoices from the person who writes and signs the checks.
  • Ensure payroll is approved by someone with knowledge of the staff, their salaries, and performance expectations.
  • Separate who reconciles bank statements from who completes deposit slips.
  • Require multiple signatures on checks above a fixed amount.
  • Tracking money that comes in: Cash register tape/POS records/cash journals/service journals
  • Tracking money that goes out: Payroll/petty cash/accounts payable
  • Recording both into your general ledger
  • Balance sheet: A point-in-time of record of the money/assets you have and money/liabilities you owe.
  • Profit and loss: A summary of revenues, costs, and expenses over a period of time (often monthly, quarterly and annual).
  • Budget performance: A comparison between your budget and actual performance.
  • Aged accounts receivable: Money owed to you but is taking longer than expected to collect.
  • Cash flow projections: An estimate of the money expected to come in and go out over a period of time.
  • Utilization rates: A comparison of the expected vs. actual performance of each of your income-generating assets. These “assets” include billable staff and equipment, rentable facilities, etc.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Christian Muntean

Christian Muntean


I help successful leaders and teams dramatically improve their performance. Guaranteed.