I work for a small firm with under 15 employees. My current boss bought his partner out recently and now spends the company funds like it’s his personal bank account.
I understand that he is entitled to any amount being the sole owner, but currently, our staff is scrambling for work, he took a loan out to buy his partner out, has a Small Business loan to pay off and a maxed out line of credit. We no longer have a cushion to rely on. He recently sold all of his personal vehicles and purchased all new vehicles through the company for family members who do not work for our company. He hired a PA who is cleaning his home and carting his kids to all of their apts. The PA uses a company card for family groceries, fuel and the PA received a new vehicle as well. Their vacations and home expenses go through the company and he provided no receipts or documentation for his spending. Being the book keeper, I am at a loss. I am scared to question his spending bk I know what happened with his partner when they questioned everything.
This guy collects a weekly salary and already is doubled his draws from the company’s funding this year.
It just seems very selfish & irresponsible as a business owner. Won’t he get audited?
I was directed by our accountant to put all of his unrelated business spending under his disbursements, I have but I know when they get hit with a big personal tax bill, our company pays that tax bill anyways, isn’t this fraudulent? Embezzlement even? When their are no receipts backing up their spending habits? Nothing linked to the actual company itself?
We are now just getting by. We put money aside for holiday bonuses and he had the nerve to ask me if there was going to be enough for him to take a draw as well, I mean really? You have spent so much already, our budget went out the window back in March. I am just really frustrated to say the least. I am the only one who knows about this, none of the staff is aware that we are not in a good place. Currently spending more than we are bringing in.
When our other boss left, (the partner) they had been in business for almost 20 years. He was the responsible numbers guy. He told some of us that our company would not last much longer, and that they had to file bankruptcy in the past due to the poor spending habits.
Even worse, our boss is never present or consistent. We are all busting our asses and he has not worked a full week in over a year. He just asked the staff to research marketing strategies to bring in more work. That’s his job!!!
What do I do?
Thank you
