The foundation of a business partnership is trust. While you can have different styles and methods, it’s important that you are on the same page in terms of ethics.
Unfortunately, not every business partnership works out as intended and trust can break down. It’s likely that your business partner has access to the company funds. What are some of the main signs that your partner is misappropriating those funds?
Drastic lifestyle changes
As a part owner of the company, you know exactly how profitable the business is. Things may be going well, allowing you to live a comfortable life. Nonetheless, you have to be careful not to spend lavishly. Your business partner, on the other hand, has made several significant purchases. They have a new house, a new car and a wardrobe of expensive clothing.
None of this seems to match their reported take-home income. While they may have savings or other side projects, it’s also possible that they could be misappropriating funds from the business. In some cases, partners can make deals without putting them through the books. If something seems off with the paperwork, this warrants a more thorough investigation.
One sign that your business partner may be up to no good is if they become withdrawn or defensive. For a business partnership to thrive, partners must communicate regularly.
Questionable working hours
Running a business requires a lot of commitment. You work long days and so does your business partner. However, they take it to the extreme. They are always in the office before you and they never leave before you. It seems like they are always there.
A business partner who is misappropriating funds will often try to shut you out of the accounts by making sure they get to them first. It’s important that you always have access to these accounts.
If you suspect unethical behavior from your business partner, it’s important to protect the company and act quickly. The more legal information you have, the better equipped you will be to address the situation.