How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask William B. Esq. Your Own Question

William B. Esq.
William B. Esq., Attorney
Category: Business Law
Satisfied Customers: 3011
Experience:  I am a civil litigation attorney with experience representing and advising HOAs, businesses, and individuals.
71563194
Type Your Business Law Question Here...
William B. Esq. is online now
A new question is answered every 9 seconds

Within an s corp with 2 equal partners, what suggestions do

Resolved Question:

Within an s corp with 2 equal partners, what suggestions do you have for reducing the chances of embezzlement. Currently in this business, one partner has 100 control over the finances of the company and the other partner doesnt even have the password XXXXX the company's bank account. Thank you!
Submitted: 10 months ago.
Category: Business Law
Expert:  William B. Esq. replied 10 months ago.

William B. Esq. :

Thank you for using our service. My name is XXXXX XXXXX I would like to assist you today.

William B. Esq. :

While there is no legal requirement (case law or statutory), from experience in litigating dissolution matters or accounting issues (including improprieties), the use of an impartial third party bookkeeper is invaluable to achieve this goal.

William B. Esq. :

Many businesses will use one service to do their books and have a different service do periodic audits (depending on the size and nature of the business, this periodic audit may occur over a period of annually or more sporadically).

William B. Esq. :

A lack of audits and a reliance on a single individual to control all finances are generally the hallmarks for future dispute and allegations (both well founded and simply perceived) of embezzlement or other impropriety.

William B. Esq. :

I hope the above is helpful, if you have any questions please do not hesitate to let me know and I will follow up quickly.


Thank you for using our service, please do not forget to rate my answer when you are satisfied. I am going to transfer our conversation to the "Q&A" format to ensure you can review the entire response (some customers have browser interface issues and I want to avoid any delay) and that I can follow up to any questions you may have quickly. I do wish you the best of luck in this matter.

Customer: Thank you, XXXXX XXXXX a book keeper, are there other options that will serve the same purpose? When i have suggested a bookkeeper in the past, the financial partner (vs the in the field partner) claims that a bookeeper will just cause the partners in this construction bus. More work because of coding receipts and whatnot. There is a meeting this week and i need to be prepared to state my case for hiring a bookkeeper or making some other change to insure that any sort ofnembezzlement doesnt happen. Thank you, kristin
William B. Esq. :

Your other alternative is the audit. You can use audits either at random or at intervals to ensure bookkeeping is consistent and that it reflects the income and expenditures reported by the financial partner (and the business - as well as taxes). There are different levels of audits (both in cost and detail) that you can choose from.

William B. Esq. :

In my experience, a combination of the external bookkeeping and the audit are the best way to prevent this type of conduct, but there is never a sure solution (I have litigated cases where the bookkeeping firm was the embezzler - it was a unique situation, but not entirely unusual).

William B. Esq. :

If the financial partner's role in the company is to do the books, and outsourcing this to another person, or business does not make good economic sense, you may want to consider as a good option rotating through audits - not using the same company each time, and occasionally using an audit that is more thorough than the one preceding and following it.

William B. Esq. :

There are many different ways to take on this sort of risk management. My background makes me somewhat more risk adverse than some others, but as long as you reach a comfortable balance between having a 3rd party looking at the books without making it so you can no longer make a profit, you are usually in the right spot. There are risk management firms that you can hire to get consultations for your business and other such resources that can provide you with specific information for your business that I cannot through this "chat" format, but getting some greater oversight over your finances is probably a good idea for everyone (even your financial partner).

Customer: thank you! Kristin
William B. Esq., Attorney
Category: Business Law
Satisfied Customers: 3011
Experience: I am a civil litigation attorney with experience representing and advising HOAs, businesses, and individuals.
William B. Esq. and 5 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA