Broke Down 69...The Adventure Continues

The question of turnover was to identify a potential information gap. As one person exits, if they do not spend some time with the person taking over, then lots of information goes into the ethos. Lost history is expensive in more ways than dollars. Also, if the person is not familiar with the industry and or not skilled in the job, the training is lacking and will continue to perpetuate the errors. Little to no documentation is also problem that can compound as well as disguise errors or embezzlement.

From what you have said so far, most of this could be placed squarely in the owners hands. My guess is that the owner is not a very detail oriented person. A wide screen view type. Get the summary, is it going the way I think it should, if yes, then keep going, good deal.

Then we get to the question of financial records. Who was doing the company and owners tax returns. If he is using a CPA firm, perhaps a new one should be considered. Because they clearly have missed the boat, ball and train on this one. Monthly reconciles and quarterly check audits would have found this out a long time ago. Just monthly and quarterly P/Ls should have shown the billing and AR/AP problems. Then the owner would have to look at them, understand what it is and why. One thing that I found amazing was the number of business owners who could not read a P/L statement.

One of the joys of being a business owner is that you only need to work a half day. Which 12 hours is up to you. Best if it the same time as your customers.

 

My best friend was a financial forensic auditor for years. Big Corporations, I'm talking billions of dollars a year companies, would hire firms like his to come in and help them figure out where they really were at financially.

He told me the waste, mismanagement and oftentimes embezzlement, inside a lot of these companies was massive. What little I witnessed inside a $25 million a year revenue company brought it into focus for me.

There's an old saying, "ignorance is bliss."

 

It is total ignorance of "the powers that be" in any business, (or government agency,) that allow this stuff to happen. And then it is also exacerbated by plain old laziness. Not too sure what you are going to run into here with this. If there happens to be a conspiracy of large scale embezzlement, occurring, the game may get a little rough. No, I haven't been watching too many bad TV shows. It does happen. Not often, but it is something to keep in the back of your mind.
Something else to keep in the back of your mind, is that the company owner could actually be a part of something. Having somebody cook the books to avoid paying taxes is not unheard of.

I think it is amazing the number of small, and sometimes not so small, business owners that really have no clue about actually running a business. They hire someone to take care of the stuff they don't understand, and put full trust into them. smh

Uh-huh. But then reality can really suck once the ignorant becomes educated...

 

Wishing you well.

 

DO HAVE TO LOG THIS AS "ON DOODY!!!???"

 

Best wishes to ya, man. Hope all is well.

 

Hope you get good news!

 

Find anything out yet?