What to Do if Your Manager is Committing Fraud: Part 5 of 8

Part 5: How to Report Effectively

The quality of your report matters enormously. A well-organized, fact-based, specific report is far more likely to trigger an investigation than a vague complaint. Here is how to structure what you submit:

5.1 Stick to Facts, Not Conclusions

Your job is to describe what you observed, not to render a verdict. Instead of writing "My manager is stealing from the company," write: "On March 12, 2025, I observed that journal entry #4471 in QuickBooks, posted by J. Smith at 11:47 PM, recorded $42,000 of revenue to Account 4000 with no supporting invoice, purchase order, or customer record. When I asked about it the following morning, I was told to 'not worry about it.'" The first statement is an accusation; the second is evidence.

5.2 Be Specific About Amounts, Dates, and Accounts

Investigators need specificity to act. Include:

•       Exact dollar amounts where possible, or reasonable ranges if exact figures are unavailable.

•       Transaction dates and the reporting periods affected.

•       Account names and numbers.

•       Names of individuals who made, approved, or appeared aware of the transactions.

•       Names of any vendors, customers, or third parties involved.

5.3 Reference the Source Documents

Your report should tell investigators where to look: the name of the accounting software, the specific report or file, the date range that covers the anomalies, and any physical documents you are aware of. This allows investigators to independently verify what you are reporting without depending solely on your account.

5.4 Organize Your Report Chronologically

Present the information in the order it occurred. Start with when you first noticed something unusual, describe how your investigation evolved, and conclude with your most recent observations. A clear timeline helps investigators understand the pattern and scope of the fraud.

5.5 Preserve Your Evidence Separately

Your personal notes, journal entries, and any documents you are legally entitled to retain should be stored in a location that is not controlled by your employer — a personal email account, a personal cloud storage service, or a physical copy kept at home. Losing access to company systems should not deprive investigators of your documented evidence.

Have Questions? MMB MBA Can Help.

At MMB MBA, we specialize in forensic bookkeeping, QuickBooks consulting, and helping businesses untangle financial irregularities. If you suspect fraud in your organization — or if you're a business owner who suspects something is wrong — we can conduct a discreet, professional review of your books and help you understand what you're looking at.

Contact us today at www.mmbmba.com

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