Stop Calling It Tax ‘Revenue’

Stop Calling It Tax ‘Revenue’

Almost nothing annoys me more than listening to politicians call the inflow of money gained from the involuntary collection of other peoples money – revenue.  Revenue has it’s own definition and by that definition taxes do not qualify, albeit somewhat necessary, taxes are also obligatory and very rarely agreed upon. If you own a business a revenue is, in its simplest terms, the expected collection of money upon the successful completion of a transaction based on the sale of a…

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Deferred Compensation For Athletes

Deferred Compensation For Athletes

A while ago I discussed a topic near and dear to my heart, contracts for baseball players, more so why they should not give a hometown discount to teams they’ve played their entire careers with.  The topic of this blog post is going to be along the same lines of contracts for professional athletes, but in a different spectrum. Contracts often differ based on sport, baseball is usually back loaded with little signing bonus money, small amounts of performance bonuses,…

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Government Shutdown? CUT SPENDING!

Government Shutdown? CUT SPENDING!

As we face yet another threat of a government shutdown because the federal government cannot pass funding through legislature I want to share my thoughts on some inherent issues with government budgets.  Lets face it, we have an enormous amount of national debt, and it’s way too late to play the blame game or point fingers, we have to do something about the deficits that we run every year.  During the last years of the Obama administration people were applauding…

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Understanding Your Fraud Risk

Understanding Your Fraud Risk

When thinking about your companies fraud risk there are a number of factors to consider, and understand to mitigate that risk.  One of the first things to consider is the size of your organization; the level of risk will scale with the size of your company.  Secondly, the type of organization you run can also indicate some of your fraud risk, if you are a non-profit or government entity you will have a much higher risk for fraud than all…

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The Essence of Fraud is Concealment

The Essence of Fraud is Concealment

When it comes to fraud there are a number of things you will look for to prove it has happened.  There are different types of fraud and deception, and a lot of different indicia of fraud, but when it comes to actually proving fraud there is one thing that will definitively make anyone believe: Concealment.  This is is the act of actually covering up and trying to make a crime unnoticed.  No one would complete this step if they weren’t…

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If It Sounds Too Good to Be True…

If It Sounds Too Good to Be True…

My mother always had a saying that you may have heard, “if it sounds too good to be true it probably is.”  This has been some of the most cogent advice I’ve ever received.  Indeed in many situations we are presented with a deal of a lifetime, something we just cannot pass up with amazing low risk, high reward possibility.  The problem is, unless you were the first investor in microsoft, this is probably a farce at best, and most…

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Adopting Change in the Accounting Department

Adopting Change in the Accounting Department

Change can happen rapidly in a business, especially if your company emphasizes efficiency and effectiveness.  Business means constant change and adaptation, unfortunately accounting departments can be the dinosaur of change.  Some of this is for good reason, you do not want to be constantly revising internal controls or accounting policies, but there are some ways in which the accounting department can adapt along with the rest of the company. Understanding the needs of the company, and how the changes it…

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The Fraud Triangle

The Fraud Triangle

My blog spends a lot of time dedicated to fraud, fraud deterrence and fraud detection.  So, in order to really understand all of those things it is best to understand the fraud triangle.  The fraud triangle is the basis of almost all frauds committed and can help shine light on how to either detect, or deter fraud. First is the motivation, or the factor that causes someone a need to commit fraud.  There can be a number of reasons; gambling…

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What If You Think You’ve Found Fraud?

What If You Think You’ve Found Fraud?

In the course of business there are often times in which someone may act unethically in order to cash in, or utilize their position to receive benefits to the detriment of the company.  So what happens when you think you’ve caught someone committing fraud? First of all, as mentioned in previous blog posts regarding fraud, you must always assume someone is innocent in order to maintain objectivity.  If you’re the owner of the company this can be extremely difficult to…

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Finding Fraud in Everyday Observations

Finding Fraud in Everyday Observations

I’ve written quite a bit about fraud, here, and here, but one thing that should be pointed out, and something I have not written extensively about yet, is that often fraud can be detected if you know what look for in everyday observations.  First, and something I have pointed out in a previous blog post, is that no business owner, manager, or even auditor should assume that any organization is impervious to fraud.  Every single organization has a risk of…

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