Protecting Against Embezzlement in Appraisal Office Delegation

Many of you know my method when it comes to delegating in my appraisal business and even in my personal life. I first know what I am worth per hour; meaning, I know how much I can make per hour. I will then delegate anything that I can pay someone else less to do. For example, if I can make $300 per hour and can pay someone to clean my office at $75 per hour, then I am going to delegate that task (assuming volume is not an issue) so that I can spend my time focusing on what I am good at and what ultimately makes more money.

However, I have at least one exception to that rule. When I spoke to my accountant about protecting myself from embezzlement, he told me that one of the best things I can do is to make sure that my employees never touch the money. For this reason, I do all the bank runs and separate all of the checks from the check stubs myself. While these tasks are simple and could be easily delegated, it is simply not worth the risk.

I love the law of delegation, and I find myself using it as often as possible, but I am also careful. Any tasks that have to do with touching the money, I do myself. If delegating a task puts myself or my appraisal company at high risk, then it is not worth delegating.

 

For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode: 154 Should You Delegate Money Errands in an Appraisal Office

One Comment on “Protecting Against Embezzlement in Appraisal Office Delegation”

  1. Love your blog and your messages, but I’m not sure I agree with this. You don’t see Jeff Bezos counting the checks for Amazon. My appraisal company has grown over the years and is now at nine employees. I have always handled the money, but I am at a point that if I do not release some control, I will never move completely outside the business. I just think you have to have a system of checks and balances where no one person has complete control. Right now I have one person who does all the invoicing and I do the final check of the invoices and payments. Eventually a manager will take over my role but knowing the right time is hard.

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