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• # 89529
• Thu 21 Mar 2013 05:32 PM

I started working for a small company a 6 weeks ago. I working with the financial controller and looking after the accounting. However I have been getting a bad feeling about the place for a while now which started when I looked at their aged creditors list and saw that they owe hundreds of thousands and a main part of my role soon became dealing with the chasing calls I have already been told that I am paying too much back to the suppliers after working out a small payment plan with two in order to stop them taking us to court. Now it looks like there will not be enough money to pay the staff (50K) as we struggled to pay the Directors expanses (8k).

I know that we have not paid the PAYE for last money yet and I have been noticed that our corporation tax is due next month when the financial controller is on holiday.

If that wasn’t bad enough I have noticed that they are moving invoices between the 4 companies they own and are in the process of buying a new one, but I have no idea how they are doing that as there is no money in the bank.

If that wasn’t bad enough I have noticed that they are moving invoices between the 4 companies they own and are in the process of buying a new one, but I have no idea how they are doing that as there is no money in the bank.

I have also found out the one of the directors who we pay a £5k a month in a business consultant and £6k in expenses, is listed as a director of 15 companies all of which appear in the age debt.

Looking at the way the company is run I think that once they buy this new company they will stop trading under the old name and try and talk away from the debts they have built up but I am very concerned about the old and intercompany invoices

Has anyone got any advice for me?

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• # 89539
• Thu 21 Mar 2013 10:18 PM

Sounds like a company I worked for back in the 80's. 

They had a similar interwoven network of companies, which I (being a newbie and very naive) thought strangely quaint. 

One day the parent went bust, owing the VATman £30,000 (work that out in today's money !!!).  The MD walked out to the front of the office, unscrewed the company nameplate and replaced it with one of the other companies.  Business continued exactly as before - same contracts, same stock, same workforce, same customers - while VATman (and several other creditors) stood outside the gate utterly helpless.

Company was still going strong many years later, but with several name changes en-route.  I often wondered if it was a skill I ought to learn, since it seems to work so well.

I can't tell you whether to jump or stay.  What I can tell you is that, while you remain there, you should learn everything you can abut how they do what they do.  It will make you into a superb auditor one day.



Edited at 21 Mar 2013 10:19 PM GMT

Edited at 21 Mar 2013 10:22 PM GMT

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  Chris
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• # 89542
• Thu 21 Mar 2013 10:34 PM

Look for a new job
 

• Ken Creek
  KJC Bookkeeping Ltd
  
  Providing Bookkeeping and Payroll Solutions to Sole Traders and Small Businesses for over 15 years 
  
  www.kjcbookkeeping.co.uk 

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• # 89550
• Fri 22 Mar 2013 10:37 AM

I would advise you to protect yourself first and foremost. It sounds like you might be in danger of not getting paid - can you afford for that to happen? Also, bear in mind your professional integrity - if you're perceived to have been involved in anything untoward, or continue to work with people who you know are up to no good, it could potentially be very damaging to your reputation.

Most of all, don't allow it to affect your health - things like this can be extremely stressful, particularly when you feel that you don't have any control over what's happening. You might decide that this isn't a job you want anyway - I would certainly be looking elsewhere, even if I remained working there until something else came up - but if it starts affecting you outside of work as well, it's time to call it a day.

Do let us know how you get on - you will get plenty of help and support on this forum.

Kate

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• # 89555
• Fri 22 Mar 2013 10:56 AM

Hi,

I agree with Kate totally.

I was in this situation a number of years ago.

I refused to process something concerning Vat evasion (he asked me because no one else was available at the time) and after that he made my life unbearable and I eventually took him to a tribunal which he settled because he obviously did not want me to disclose what I knew!

Marilyn 

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 89559
• Fri 22 Mar 2013 01:50 PM

Thanks Kate and Marilyn 

Yes it has been very stressful for me over the last few weeks as I have seen more and more. I was going to leave but I'm not in a financial position to do that. I took this job after being unemployed for 6 months, so it was a real lifeline when it came alone.  So will have to stay while I look for something else and see if I get paid this week.

And thanks Chris you know it really didn’t think about study what they are doing and you are right I’m sure there are a number of frauds going on and understanding the process will be good knowledge to have.

I have decided to stop trying to fix in now that I see the companies for what they are and operate with integrity and honesty and work on the aged debt so I can pay some staff as it is not fair on them either, especially as the directors are claiming their living expenses as business expanses.

I have also made a report to http://www.actionfraud.police.uk about the group but I don’t think the person I was talking to knew what I was reporting or what to do with it but at least I am on record somewhere if any of this comes back on me.

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• # 89721
• Thu 28 Mar 2013 09:36 AM

Left this stupid job and look for new one where you can enjoy working envorinment and perform according to you skill. 
Try to protect yourself first because in case of any misshapen, all the signs will turn at your directions. 

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