Embezzlement red flags

This week's newsletter is packed with everything from witchy marketing tips to AI-generated client podcasts (yes, really). We've got red flags to watch for when your client's "trusted" bookkeeper seems a little too protective of the books, a TED Talk that says your stress might actually be useful and a tech stack so slick it deserves its own walkthrough video.

So scroll on. There's plenty to digest (and possibly get fired up about).

Bench. But make it awkward. Bench just relaunched a partner program for accountants—after ghosting clients not too long ago. Let's just say the LinkedIn comments are interesting.

Marketing budget? Never heard of her. Regan Bashara, also known as Numbers Witch & Bookkeeper on Youtube, proves you don't need ad spend to get clients, just consistency, content and a little 'witchy' wisdom. 

Stress isn't the enemy (but avoiding your inbox might be). In this TED Talk, Dr. Aditi Nerurkar breaks down how to channel stress into resilience and growth. Because burnout isn't a badge of honor. 

From submarines to spreadsheets. Navy veteran Mark Steinhoff makes the case that veterans might be the accounting talent pipeline you've been looking for.

Bookkeepers behaving badly? Spot red flags before it's too late

When fraud strikes, it often hits small businesses and nonprofits the hardest. In some cases, the thief is the trusted bookkeeper. Jackie Rockwell, CEO of Brass Jacks, an online school for aspiring bookkeepers, has seen this scenario play out too many times.

Here, she shares practical red flags to watch for, the steps accountants can take to help clients prevent embezzlement and what to do when suspicion turns into something more. If you’ve ever assumed “it could never happen here,” this conversation might change your mind. -Janet Berry-Johnson

There have been several news stories lately about bookkeepers stealing from schools and small businesses. What red flags should accountants watch for to help their clients detect fraud early?

Several red flags can indicate embezzlement. Mainly, if the bookkeeper holds onto the books so tightly and won't let anyone else look at them, there could be something suspicious going on. Other red flags include not getting financial reports or not getting answers to questions you have on a financial report. Bookkeeping should be transparent. If you're getting any pushback when asking questions about the books, that’s an immediate red flag, and you should investigate further.

What internal controls or procedures can accountants recommend to reduce the risk of employee fraud?

Every company is different, but we recommend some basic internal controls to protect the business. These can be either preventive or detective measures. Preventive measures—like ensuring the bookkeeper doesn’t sign checks, comparing merchant service reports to the company's financial statements and policies for who opens the mail and makes deposits—stop embezzlement from occurring. Detective internal controls help detect if embezzlement is occurring. They include things like comparing payroll summary reports to direct deposit records, reviewing canceled checks and reconciling credit card statements.

How can accountants proactively educate their clients about fraud prevention?

Many business owners are completely blindsided when they fall victim to fraud or embezzlement. Accountants can help protect their clients by informing them of these threats to their business. They could also include fraud and embezzlement prevention services in their packages. Educating clients about why they shouldn't blindly trust anyone who handles their money is vital, and they can do that by telling these stories of fraud and embezzlement. Most accountants don't automatically offer this level of service to their clients. It’s helpful for business owners to be aware that no one is looking for fraud or embezzlement and it's something they need to do proactively.

Last year, my business partner, Jackie Shaw, and I recorded a conversation for our YouTube channel where we discussed a local business that fell victim to embezzlement. Three couples owned the company and one of the couples committed the theft. It was devastating to the other owners who had put complete trust in their business partner.

Once an employer suspects fraud, what immediate steps can they take, and how can accountants assist in investigating and resolving the situation?

If you suspect fraud, contact an accountant immediately. They will advise you on how to proceed. You don't want to tip off the employee that you suspect them of fraud because they may try to destroy the evidence.

I once worked with a company and explained to the business owner that I was having a hard time getting the information I needed. The next time I came into the office, the computer I had been using for their bookkeeping was sitting in a puddle of water. The culprit knew I was onto something and tried to destroy the evidence.

This interview was edited for brevity and clarity.

Speak clearly, get heard, drive action

Communicating financial insights shouldn't feel like translating ancient texts. Yet, too often, it does. In an interview with AccountingWeb, fractional CFO Dhosjan Greenaway-Dalini explains why the best finance pros learn to speak in plain language, tailor their message to their audience and ditch the jargon (and the ego).

Why this matters: If your clients don't understand what you're saying, they can't act on it. And that's a missed opportunity for everyone. Translating numbers into meaning is where the real value lies. (AccountingWeb)

Your month-end in a podcast?

In a recent "Jason on Firms" podcast episode, host Jason Staats, CPA, digs into the tech stack of a seriously future-forward accounting firm. The firm creates AI-generated podcasts using Google's NotebookLM to recap financial results for clients. Yep, the P&L now has a voice. It's tailored content that makes understanding their numbers feel... almost cool? 

Why this matters: This is client communication at a whole new level. If your tech stack doesn't help you stand out and scale, it might be time for a refresh. (Jason on Firms)

 14 

Number of free hours of CPE you can get at the 2025 Ensuring Success virtual conference. (Ensuring Success)

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• Recessions don't just test resilience; they attract scammers like flies to honey
• Gen Z might finally be warming up to trial balances and general ledgers
• New IRS guidance means less guesswork for tax rules around paid family leave

PCAOB faces political pushback

In a bold move that's stirring up the public accounting world, Republican lawmakers proposed legislation to dismantle the Public Company Accounting Oversight Board (PCAOB), the watchdog established in the aftermath of the Enron scandal. The plan involves transferring its responsibilities to the Securities and Exchange Commission (SEC) and redirecting its funds to the Treasury.

PCAOB Chair Erica Williams expressed deep concern, emphasizing that the board's specialized expertise, built over two decades, can't be easily replicated. She warns that such a shift could jeopardize investor protection and market stability, especially during volatile times.

Why this matters: This isn’t just regulatory drama—it’s a potential shake-up of the entire audit oversight system. Whether you think the PCAOB is a vital safeguard or federal bloat, this proposal could impact audit quality, investor confidence and how the public perceives the accounting profession. If you’ve got strong feelings about the legislation, contact your representatives, speak up in your professional circles or get involved with advocacy through your state society or the AICPA. Don’t just watch from the sidelines—your voice counts here. (CPA Practice Advisor)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

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The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.