Your business is your livelihood. It’s what you’ve poured your blood, sweat, and tears into establishing. So it can be very devastating to suddenly find out that your accountant has run away with your company’s money. You can actually feel like a rug has been pulled out from under you.
Accountants can steal money for many reasons, including lack of internal control, poor salaries, and obsolete technologies. This is why it’s imperative to always invest in your business by adopting the most appropriate technologies and motivating your workers through attractive salaries and other benefits. Nonetheless, some accountants steal for reasons beyond your control, such as greed. Unfortunately, you can do little or nothing to cure greedy employees.
There are, however, many ways through which accounts can steal money from your business. But then, stealing is mainly made through white-collar crimes like money laundering and embezzlement. Of course, some accountants can also steal huge amounts of money within the business premises. Fortunately, there are steps you can take to get your business back up and running with the help of professionals. Here is what you need to do;
Notify law enforcement authorities.
The first thing to do upon realizing your accountant has run off with your money is to notify the law enforcement authorities of your country. Give them details, including the accountant’s name, how much you think he ran off with, and the last time he was seen within your business premises. This step is crucial as law enforcement would do everything possible to track down the suspect early enough to recover all or part of your money before serving justice.
2. Employ a new accountant
The role of an accountant in every business can never be overemphasized. Accountants play the crucial role of making critical financial decisions by collecting, tracking, and correcting the organization’s financial decisions. So, once you’ve notified authorities, you will need to recruit another competent accountant to take over from the one who ran away with your money. While at it, remember to do a background check on the most eligible candidates before making a final decision. This is to help you not fall into the hands of another white-collar criminal.
Of course, suddenly recruiting an accountant can be difficult and stressful, but it’s essential to getting your business back on track. If you find it too overwhelming to recruit a new accountant, you can hire the services of professional recruiters to help you get a reliable and competent person to fill in the gap.
3. Review your financial records
You also need to review your financial records carefully to ensure all your money is accounted for. A thorough review will help you know exactly how much your ex-accountant must have stolen from you. However, hiring professional auditors for a detailed financial review is advisable. The reason is that professionals will carefully review your business and identify all those areas where your accountant may have stolen from you. Also, professional auditors will give you a better understanding of your financial situation, which will help you make informed decisions on how to sustain your business and prevent it from shutting down.
4.Make changes to your accounting procedures
It also makes sense to modify, update or change your accounting procedures to prevent such problems. Of course, such changes don’t just end with hiring a new accountant, as you could also implement new and more sophisticated accounting software that helps you stay on track with the activities of your accountant. Also, you could make changes to your internal accounting procedures. For example, you could limit access to only authorized personnel in interior areas such as storage areas.
5. Get help from other professionals
Dealing with the aftermath of your accountant running off with your money can be a daunting task. Fortunately, many professionals can help you through this challenging phase. For example, you can hire a lawyer or a professional investigator to cooperate with law enforcement to track and punish the criminal. Also, you could employ another professional accountant to review your financial records, identify areas where you may be vulnerable, and make changes to your accounting procedures. Similarly, you could hire professional business analysts and developers to help identify other business opportunities that could improve your organization’s finances.
The rise and fall of the blood-testing company, Theranos, has already been heavily documented through journalism, a podcast, and a documentary. Consumers have long been privy to the meteoric ascent of alleged wunderkind, Elizabeth Holmes, who started the company when she was only 19 years old in 2003 in the pursuit of developing a method of testing blood that required smaller samples and vastly shorter testing times, all by a machine. As many of us know now, this was eventually proven to be false. While Holmes’ attempts to turn the medical technology industry on its ear may have gone off the rails there has been recent discourse regarding how companies across the entire economy can learn from the mistakes of Theranos’ harmful organizational culture that played a role in its ultimate undoing.
The harmful organizational culture of Theranos likely played a large role in allowing the company to subsist for so long on fraudulent claims to both investors and consumers. Because dishonesty and cutting corners were a major part of the culture within the company, employees at all levels were forced to make a choice to either be complicit in the fraud, or walk away from the operation entirely. However, in examining the culture of fear that Holmes managed to foster throughout her tenure with the company, it’s worth noting how management and executives must be viigilant of similar behaviors within their own corporations to protect themselves against harmful organizational culture.
No Fear Careers
The culture of fear within Theranos was practically by design when it came to defrauding investors. Employees feared they would be subject to litigation or loss of employment if they asked too many questions or became too loose-lipped regarding Edison. This was the first prong in perpetuating the fraud. The second prong was how the harmful organizational culture leaked outside the company to third parties. Not only did it prevent internal employees from blowing the whistle on Theranos’ shortcomings, but it also prevented those outside the company from asking vital questions. Experts who had been contracted to consult or work directly on the project were scrutinizing the capabilities of Edison, but Elizabeth Holmes and her associates were successful in silencing these detractors. As a result, there was never an honest and critical dialogue of Theranos’ mission and values, which contributed to its destruction in 2015.
Discerning Doers
Fear is just one way that harmful organizational culture can poison the company well. One of the greatest marks of a company’s culture can be the measure of those who were either willing or unwilling to hitch their horses to its wagon. It’s easy to dismiss a lower-level employee who could have walked away from the company for a laundry list of reasons. However, the departure of most enmeshed professionals deserves a closer look. Theranos and Holmes poached engineers and technicians from corporate giants such as Apple and reputable scientists to consult on Edison, but when those professionals balked or dissented along the way, they left the project. Advertisers also began to jump ship when their confidence in the product were understandably shaken. What’s important for other business owners to understand is that when there is a pattern of employees or contractors headed for the door, their must be steps in place to ensure the full picture is in crisp focus—things like exit interviews detailing their reasons for leaving, so that any toxic aspects of the company culture will be brought to light.
Corporate Culture Checkup
With the concept of corporate culture encapsulating so many different aspects of a business’ organizational structure, most in leadership are unsure of where to begin when it comes to evaluating it. However, if there’s one main takeaway from the Theranos’ collapse, it’s that corporate culture must be periodically evaluated in order to maintain the company’s mission and values. Because Theranos executives did not prioritize maintaining their corporate culture, a harmful rot was able to infect the organizational structure, and persistently grow over a decade. Not only must leadership invest in having their corporate culture evaluated, but once they have the full picture, they must take concrete steps towards adjusting day-to-day operations, acquiring new tools and methods for reinforcing their culture, and holding any employees who have been involved in misconduct accountable for their actions.
The modern workplace is ever-changing, and with that comes new challenges for employers regarding maintaining a safe and comfortable environment for their employees. As an employer, one of the best ways to ensure your workplace is safe and up to par is by conducting a company culture audit.
A company culture audit thoroughly examines your workplace culture and policies to identify areas requiring improvement. It is often conducted internally to enable managers to see just how well their employees communicate and act and how well the organization’s values are reflected in the employees at every given time.
A culture audit is essential for organizations for several reasons;
It can help point out culture problems.
After a thorough culture audit, the management can uncover several things, including dissatisfied employees, communication issues, and other hidden issues that adversely affect the organization’s culture.
It helps improve the workplace culture.
Managers and business owners can only improve their workplace cultures after measuring them. A culture audit, therefore, helps organizations target all those areas and sectors that require improvements. Besides, a thorough company culture audit can suggest the appropriate initiatives for implementation.
It gives employees freedom of speech.
In most organizations, employees rarely have the opportunity to speak up when they notice a problem with their culture. However, a culture audit allows employees to voice their opinions about the things affecting their culture.
Evaluates how well your efforts have impacted your organization’s culture
As a manager or business owner, you must have taken several steps to create a healthy company culture. Nevertheless, it can be hard to tell the effectiveness of your steps without a proper culture audit. However, through a culture audit, you can get to know the extent your organization’s culture is improving, so you can, in turn, make relevant adjustments.
It helps you retain talents.
Above all, a company culture audit will help you retain your employees. There are indications that most employees would prefer to work in companies with a better culture. According to statistics, 48% of employees who believe their company culture is poor often seek new employment. But then, a company culture audit will help you determine whether your employees are happy, so you can make adjustments and changes before they decide to leave.
However, when conducting a company culture audit, there are a few areas you need to focus on to ensure that your workplace is a safe and welcoming environment for all of your employees. They include;
Workplace safety
Workplace safety comprises an integral part of the workplace culture. Unlike in unsafe work settings, employees are generally happier in safer work environments. Therefore, while doing a culture audit of your organization, you must determine if your existing policies and procedures adequately address safety concerns. You must also find out if the working environment is free of potential hazards. And above all, are your employees trained on how well to stay safe at work? Finally, of course, you should be ready to modify your procedures or suggest actionable steps to improve safety within your organization at the end of the culture audit.
Workplace environment
A favorable workplace environment is undoubtedly more attractive to employees. However, the truth is that when the working environment is conducive, employees can easily work according to their full potential, which is often reflected in high productivity and high-profit margins. Therefore, during your company’s culture audit, you need to determine whether your workplace is comfortable and conducive to productivity. For example, find out if your employees can take breaks when needed and whether they have access to all the necessary resources to do their jobs effectively. Again, after the findings, you should be able to make proposals and take steps toward improving the workplace environment.
Employee wellbeing
Employee wellbeing refers to an organization’s overall physical, mental, emotional, and economic health. Positive employee wellbeing is reflected in high rates of employee retention, higher levels of productivity, and higher profit margins and returns on investment. Therefore, as a leader or manager, you must determine if your employees are supported in their physical, mental, and emotional wellbeing. And, of course, the best way to find this out is through a culture audit. During the audit, be intentional about finding out if they have access to affordable and quality healthcare. Also, ask them if they have a good work/life balance and take the proper steps to improve their wellbeing.
Diversity and inclusion
Diversity and inclusion are also critical in most workplaces. There is always a cause for concern when certain groups of people feel discriminated against within the workplace. It is, therefore, of the utmost importance that diversity and inclusion be one of the most significant areas of focus during a culture audit of an organization. The culture audit is, therefore, the perfect opportunity to find out if your workplace represents the diversity of your community and whether or not your employees feel valued and included, irrespective of their race, ethnicity, gender, religion, or other identities.
Sexual harassment and discrimination
Whether we admit it or not, sexual harassment and discrimination are more common in workplaces than many people want to admit. And, of course, it takes a toll on individual victims and the organization. Therefore, it is crucial to focus on sexual harassment and discrimination during a culture audit. You should ask yourself whether you have implemented the right policies and procedures to prevent and address sexual harassment and discrimination within your organization. Also, you must determine if your employees know of such policies and procedures.
In the United States, the corporate landscape is ever-growing and changing based on consumer needs. As companies seem to only get bigger, it’s understandable how a working professional would not want to be just another cog in the corporate machine. This is one of many reasons why startups are so attractive in concept to the workforce, especially young professionals who are just beginning to build a resume. The unmitigated potential to rise through the ranks is often one of the biggest reasons former employees choose to dismiss the risk associated with working for a startup. But before you sign paperwork to become part of a unique mission or vision, there are questions you should have prepared for an interviewer with promises of free lunches and an “exciting work environment.”
First and foremost, there is no such thing as a one-sided employment interview. A prospective employee should use the interview as an opportunity to ask just as many questions of a prospective employer regarding how well they will fit into the corporate structure. Before submitting to an interview with any startup, it’s important that a candidate do their research and come prepared with inquiries regarding many aspects of a startup’s mission, vision, and culture.
What is the nature of your current cash flow, and what contingency plans do you have in place should funding evaporate?
Young professionals especially will skip this question, either because they’ve never applied for a startup position, or because they don’t expect to understand the answer. However, there is typically information available about a startup’s capital on the internet before asking in the interview. Additionally, the interviewer’s ability to answer this question is directly relevant to the culture of the startup. Even if the interviewer is not a C-level executive, they should be equipped within reason to answer any and all questions a prospective employee might have regarding the startup’s trajectory. Failure to answer this question to the candidate’s satisfaction could be an indicator that the startup is only focused on recruiting bodies for the organization.
What are the onboarding and training procedures associated with this position?
The idea of receiving little to no training may sound ludicrous to both experienced and novice professionals alike. However, the quality of training in the early stages of a startup can be wildly inconsistent across the board. There are some professionals who will feel comfortable with being thrown in the proverbial deep end and learning to swim on their own, but that is why it is crucial to establish the training protocol during the interview so the candidate can determine whether or not they will be able to thrive in the workplace.
What level of input will I be required to have in decision-making?
Some startups are looking for problem solvers, while others are looking for staff who can support the decision-makers in their vision and strategy for the company. Regardless, it’s important to know what is expected of you regarding your professional opinion on day-to-day operations. It is just as important to know what level of value that opinion will be given by management and how flexible they are in weighing diverse perspectives amongst their staff.
What is my projected rate of compensation, and how much flexibility is there that compensation?
One of the biggest red flags in a recruitment advertisement for a startup is vagueness regarding the compensation, especially if it boasts other perks for the job such as free lunches, employee lounges, or merit-based incentives to inspire employees to reach for the stars. This is a common tactic used to get candidates through the front doors of the startup in order to give them the flashy elevator pitch from inside the allegedly exciting workplace. While it’s true that some startups do offer legitimate perks in addition to adequate compensation, candidates must be on their guard and be prepared to ask detailed questions regarding salary.
What can you tell me about this company’s values, and what is your execution plan for maintaining those values?
Once again, this is a question you should ask in any job interview, and the interviewer’s ability to answer this question to your satisfaction are crucial to your decision of joining a startup. A company’s values—startup or otherwise–should always be made crystal clear for all employees, and therefore any employee should be able to answer. Those values must also be intrinsic to day-to-day operations, and must be part of every decision made within the corporate structure. It will impact how management builds trust within their teams, how employees are affected in their long-term tenure, and how well a startup will eventually reach its projected potential. If the interviewer is not able to clearly explain the startup’s values, it’s a enormous red flag that says you should look for employment elsewhere.
If you’ve never had to navigate the corporate world, you know that startups can be a great place for brand new professionals to begin padding their resumes with relevant experience in the corporate world. Startups can serve as a literal springboard for careers across all industries, but there is often an enormous drawback when it comes to small company just starting out—pervasive, toxic corporate culture. Professionals hoping to launch a startup have a duty to be vigilant of signs of toxic startups in order to preserve the longevity of the company in the future.
Ego in leadership
When those at the top of the chain of command fail to recognize the hard work of those employees working under them, it can foster an unfulfilling work environment. Executives with a history of taking victory laps that belong to their employees are sure to poison the well—driving up turnover, exacerbating burnout, and actively contributing to the decline of the company. In order to ensure ego in leadership does not interfere with the company’s mission, leadership should always go out of their way to acknowledge the hard work of their employees.
“Yes-man” complex
Another one of the signs of toxic startups is when those in leadership are unable to take criticism or hear ideas that might not be 100% aligned with their vision of a project or direction to take the startup. When there is no room for criticism from those heavily involved with the nuts and bolts of day-to-day operations, those operations will never improve or become more efficient over time. Consequently, this also creates a workforce full of sycophancy and yes-men who do not feel comfortable bringing problems or new perspectives to the attention of leadership.
Lack of diversity
When everyone in the company looks the same, they will be inclined to make the same mistakes over and over again. Even in workplace environments where criticism is welcomed by leadership, a lack of diversity ensures that the incoming opinions and perspectives will be limited. Without diversity, it’s also unlikely leadership will be able to anticipate or prepare for inevitable consequences as a result.
High turnover
One of the most common signs of toxic startups is high degrees of turnover. Every business should expect some rate of turnover in the course of their operations, but high rates of turnover are a sign that there are pervasive problems with a startup’s culture that are not being addressed. When those problems are ignored, employees quickly become fed up with the inattention and seek employment elsewhere.
The “family” narrative
The smaller a company is, the more likely employees will develop close relationships in pursuit of the company mission. While strong working relationships are important for a business to thrive, no workforce should think of their coworkers as family. Even in the best-case scenario of the family narrative blurs the important boundaries between the employees’ personal and professional lives. Under the worst of circumstances, the family narrative can be weaponized against employees by forcing them to form emotional attachments with their work that prevents them from practicing healthy work-life balance, and distorting their own sense of identity.
