My first post and it's a tricky one. I did bookkeeping for a Private Limited Company until recently. I declined to continue to carry out work for them because the MD was basically using the Company bank account as a personal account in a big way and making me put entries through the Company which clearly should have gone through the Directors loan account.
I mentioned a particular entry (for the hire of a Marquee at over £1500) to the Accountancy practice who prepare the Company accounts and they just said they knew him of old and basically didn't want to know.
This Director has taken it very badly that I won't do his books any more and has started a smear campaign locally saying that I took money from the bank without his permission. I actually just paid my invoice, same as I did every single month - and this is borne out by the fact that if I had indeed stolen money from the Company he would have reported it to the police and they would have been round my house by now (some 4 weeks later).
Anyway, I feel that the only way I can prove my innocence is by proving his guilt if you see what I mean. I therefore wish to know what, if anything, I should do next.
It may be his accountants correct the entries when doing year end, especially given the comments.
I presume you are registered for money laundering? The fact that he cajoled you to make false entries in the accounts makes it reportable in my opinion, and I think you have a duty to report it as a suspicious activity
I did often wonder what happens when you make one of these and I discovered yesterday they are put on a database which HMRC have access to, so its is likely that HMRC will pick this up at some stage.
Well done for walking away.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Is his smear campaign all verbal, or is there anything in black and white, such as on Facebook etc? (Yes you would be surprised how daft some people can be!!). If you have evidence....take pictures so you have it in the event of subsequent deletion, then consider if either you or better if you have a friend who is a solicitor, sending him a letter saying if he doesnt stop then you will have to take it further legally and that you have proof of his .
Be careful you are not reporting him as revenge, but if you do have serious reservations then you do need to report it.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You have a lot of very good advice from both John and Joanne.
I would add that if you are working as a bookkeeper for other companies, then you should definitely report the director to the National Crime Agency for trying to make you make false entries in the accounts. You have a legal duty to do so (as mentioned already)
Other than this, I would recommend saying nothing. It will die down, and if the director insists on continuing with the smear campaign eventually others will realise it is not true as over time, people will stop believing him (even if they had previously) and realise he is being malicious. It is important you don't do anything. You don't have to prove your innocence, and any public attempt to do so, may actually make you look guilty even though you are not. If you publicly prove his guilt, you could end of getting a bad reputation if others take it the wrong way.
Let him dig his own hole. You don't want to help him do it, as you could fall in too by accident!
