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What Do You With a Bookkeeper That Makes an $11,466 Mistake?

 

by Glenn Shepard

November 3, 2009

 

 

Some people think that once you’ve “made it” in business, you’ll have fewer problems.

 

In reality, it’s quite the opposite.

 

In order to "make it” in any business, you have to do more than others.

 

The more you do, the more mistakes that will be made.

 

And the more mistakes that are made, the more problems you'll have to deal with.

 

After spending last week on the road, I returned to my office and went though the typical stack of paperwork on my desk.

 

Within it were the weekly deposits, which I audited as I always do. I discovered that one deposit for $48,448 was listed for $36,982.

 

So what do you do about a bookkeeper that makes an $11,466 error?

 

Assuming it’s not a regular occurrence, you find out why it happened, and what needs to be done to ensure it doesn’t continue happening.

 

IBM founder Tom Watson once had an employee who made a mistake that cost him $600,000. When asked if he was going to fire the employee, Mr. Watson replied, “Of course not. I just spent $600,000 training him. Why would I want another company to reap the benefit of the training I just paid for?”

 

Now don’t get me wrong. I was not happy to discover the $11,466 error, and the ensuing conversation was not a fun one. But it was just that a conversation not a disciplinary proceeding.

 

In business as in most areas of life, how we react to problems is sometimes more detrimental than the problem itself.

 

While ignoring problems is never helpful, neither is overreacting.

 

Those who accomplish the most are often the ones that make the most mistakes.

 

Mistakes are inevitable and as long as they’re reasonable and not too frequent, they provide the best training.

 

The only way to avoid ever making any mistakes is to do nothing, and that's the most unforgiveable mistake anyone can make in business.

 

 

 

To Your Success,

 

 

 

 

 

 

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It’s more important to always be reasonable than to always be right.

 

Glenn Shepard

 

Dear Glenn,   

I have a driver who has given me notice that he will be absent on Tuesday, December 8th, because the (Green Bay) Packers play the Baltimore Ravens in Monday Night Football on December 7th, and he will be "unable to do his job properly" that Tuesday.

      I'm a big Packers fan too, but think this is ridiculous. Is this a battle I should lose?

Brett in Appleton, WI

 

Dear Brett,   

I remember the great Paul Harvey reporting that when the Chicago Bears were having a great season, one large Chicago employer that was open on Sundays put up a big screen television that was only turned on during Bears' games. As a result, their absenteeism rate on football Sundays dropped by over 50%.

      While I agree with you in theory that he should still be able to do his job even when he doesn't feel like it, I say this is a battle you lose in order to win the war, assuming he has the time coming to him.

      At least he had the professional courtesy to give you this much advance notice.

       Also keep in mind the legal ramifications. If he did come to work that Tuesday and got in a wreck in your truck, you could have a ton of liability for putting him behind the wheel when he advised you he would be in no condition to drive.

     On another note, my hometown team (the Tennessee Titans) has the second worst record in the NFL (thanks Tampa Bay for being worse), so I'd he happy to have a team good enough to want to stay up that late to watch on a Monday night.

      Thanks for your question.

Glenn In Nashville

 

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