Since the world became aware of the monster Ponzi scheme perpetrated by Bernard Madoff, lives and balance sheets have changed forever. Not only did Mr. Madoff ruin thousands of people financially, he broke the bonds of trust many of us had with the people who handle our finances. We will never again look at our bankers, accountants, and investment reps without a glimmer of doubt, based on how one man was able to swindle so many for so long.
While Mr. Madoff languishes in prison for the rest of his life, other people are in the process of answering for the roles they played in his scheming. Right now, five of his former employees are in court, testifying about their roles in the $17 billion fraud.
According to testimony from the first two former employees, there were no set rules within the operation when it came to controlling expenses. One employee testified that there were “no rules” when it came to approving expenses. In fact, expenses charged to company credit cards were rarely turned down, and included family vacations, shopping trips to high-end department stores, country club dues, and other personal expenditures. Not only was Mr. Madoff “generous” when it came to paying for his employees extravagant purchases, he frequently threw lavish parties for all to attend. Moreover, the chief operating officer testified that he set up a general ledger account to pay his personal American Express bills. Perpetrating a fraud certainly has its perks, especially when those involved claim that they had no idea what was really going on.
Individuals running legitimate businesses know that giving your employees free reign over their expense accounts is a sure fire way to watch your profits go bye-bye. There have been occasions when the odd employee will attempt to expense something inappropriate, and it will get by the person handling the processing of those expenses. Typically, there are hard-and-fast rules established for what you can, and cannot expense.
One way to ensure that you don’t toss your profits out the window is to have one or more employees on hand who are trained in how to handle the bookkeeping duties of your operation. Knowing the difference between a payable and a receivable is crucial, as is knowing which general ledger account expenses belong in. Online training in accounting and finance is the perfect way to gain the knowledge needed to run a tight financial ship. Sure, there are people who spend years getting degrees in finance and accounting, but online training can also teach anyone how to keep those numbers in line. After all, most of us aren’t running multi-billion dollar Ponzi schemes; we’re earning honest livings and keeping track of our expenses.
Coggno is here to help with all your online training needs. There are thousands of courses available that offer the highest quality training. Whether it’s accounting and finance, human resources, workplace safety certifications, or any other type of training, we’re your go-to source for online training, all available with a few simple clicks of your mouse.
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