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jwillcreative
June 27, 2024
Question

Categorizing Theft/Embezzlement

  • June 27, 2024
  • 1 reply
  • 0 views

I have recently discovered that my accountant was embezzling money via my payroll account. We've already taken all steps from a criminal perspective, but I'm trying to clean up my books. How would I go about categorizing stolen funds? It was originally categorized as payroll taxes - because he ran it through payroll as taxes, but into his bank account. 

 

My thinking is that retail businesses regularly deal with theft, either directly from employees or from customers. So how would those things be accounted for?

1 reply

FishingForAnswers
FishingForAnswers
July 3, 2024

@jwillcreativeSorry you're having to deal with this.

 

One option would be to set up an Other Expense to track it by whatever name you prefer.

 

I am (thankfully) unfamiliar with QuickBooks Online, but I would assume they have Journal Entries available somewhere. You can use that to decrease the payroll tax expense by the relevant amount, and increase the Other Expense you choose.

 

Ideally, this would be done incident by incident.

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