Recent developments in Wisconsin law under the Uniform Fiduciaries Act prompt every business to reevaluate accepting company checks for payment of goods or services provided for a customer’s personal use. Vendors or contractors could be held 100 percent liable to relinquish any monies received in payment for personal goods and services if found to have been paid out of embezzled company funds.
Businesses should adopt policies to accept payment only from checks or a credit card in the customer’s name. Accepting company checks for goods or services that a vendor or contractor knows will benefit an owner or key employee of the company personally is a risky practice. Contact us if you have any questions or concerns.
Written by Patrick Wirth, CPA, CVA | Partner
Posted in Business Advisory