I need advice on how to stop questionable accounting practices.

I recently started at the family business. I have noticed a few things that seem odd when it comes to the books. I am hoping to get some advice or find some resources. One of the partners has run two business into the ground, barely dodged tax evasion, and been bankrupt twice. The other partner is someone who I greatly respect and want to protect the best I can.

The business is a small business located in California. It is an s-corp with a 50/50 partnership. I have access to checking account details from the bank and I have limited details about other accounts from QuickBooks.

  • All of the checks are mailed to the questionable partner’s home, deposited online by him, then brought to me at the office to record in QB.

  • I can see in QB there are revolving credit accounts open but I have reason to believe the cards are not associated with the business even thought they are paying business expenses. In other words, the questionable partner is using personal cards to rack up “points” for business expenses.

  • Personal expenses are being charged to those same cards then the card shows a payment from the questionable partner’s personal accounts.

  • There are no budgets. Everything is paid with a card. Checks are rarely written.

  • The accountant is a personal friend of the questionable partner. So are the lawyers.

There is more amiss than just the accounting but I am more concerned with the accounting. This questionable behavior has to stop but I am not sure how to present it to the other partner. I need a plan first but I don’t know where to start. What resources are available? What should I be watching out for? Can this mess be fixed? Is there a better place to post this?

Hiring managers before Grand opening, I’m not getting something.

I'm looking to open my first fast food restaurant this fall. Part of opening will obviously be hiring managers. However I can't wrap my head around how I obtain managers weeks before opening. When should I do this??

If I post the jobs two months before opening and have someone hired a month before opening then how can someone accept the job with several weeks to go before they actually get paid? I know there is staff training to be done but I was lead to believe that was more like two weeks before opening.

Can anyone shed light on this?

My research into what motivates the human spirit

Having been in B2B sales for nearly 15 years now, I've seen up-close and personal what it takes to drive people forward when there's not much in the bank or in the gas tank (pun-ambivalent). During my career I held multiple roles including frontline sales at a large callcenter, face-to-face account executive in SMB, sales coach for Inside Sales reps, as well as Sr. Sales Executive at a small Silicon Valley player.

Everyone has had their share of ups and downs in life and I'm no different. One of the ways I've planned on giving back to the world at large is diving deeper into research on what makes the human brain tick, which parts have a demonstrable impact on our physiological & mental systems, and really dissecting what words or combinations thereof drive motivation in different cultures and industries.

My work will include new research and insights from leading figures in neurosciences, sports, and other associated fields.

I started it off by writing some preliminary thoughts here and I welcome the Reddit community to send your thoughts and questions my way – either here in this thread, or PM, or email me through the Contact Us page on my site. I'll try to compile all the questions as I receive them and make sure the research answers them thoroughly as I progress in this journal.

Why am I doing this? I always knew if I wasn't in sales, I'd be teaching. Quite simply, that "aha!" look I see on someone's face (regardless of their age) is what drives me. Like the old adage goes: "Give a man a fish, and you feed him for a day. Teach him how to fish, and you feed him for life."

cheers

Need Help Deciding on Mentorship/Funding Deal that Extends for Life

I am a software engineer and solo entrepreneur. I am working on a patent for my own company that will change how data is stored. The goal is to license out this technology to other companies so they can use it on their own systems.

I need funding to pay for the patent fees (planning on up to $30k for full utility patent, even though we are going provisional first). I also would like mentorship since I have only a few years business experience and only a couple business connections. I have no access to easy funding, e.g., family is poor, friends are poor, no assets for loans.

A CEO I worked for before recently came back into my life and is interested in becoming business partners. He is not in the tech industry. He has been in business for over 20 years and runs a $30M/year company. He has a strong network and connections to other potential investors. He has great relationships with other CEO's of bigger companies, some of which could become licensees for my patent.

He is proposing a me/him, 90/10 equity split and loaning (with interest) the company the funding for the patent fees. He will mentor me and make introductions to people in his network when needed. He will also help in marketing and finding investors if we need more funding.

This is all great, the one caveat that I need help with deciding on is: he wants this 90/10 split to extend for all other companies that I start in the future that are related to this patent or not. I already have two companies fully ready (2 years of work) to start that are related to the patent. He is aware of these two companies.

He says this type of deal is how he started in business with his mentor and what he has done all throughout his career with other companies. He is very loyal and wants our relationship as business partners to be for life and for us to be great friends. He isn't trying to pressure me, and suggests that I think hard before committing, because he wants there to be no regrets and for us to have a healthy relationship for life.

I need your help, please:

  • Is this type of deal normal? Have you heard of these types of deals before? Any horror stories that came out of this kind of deal?

  • On raising from VC's, how do you think they will feel about this deal? Will they see it as a co-founders setup? Or will they be turned off by his presence and that he automatically gets a piece of the company?

  • How do you think I could benefit from this deal? How do you think I might get burned in this deal?

For now I am leaning toward accepting the deal, but I am trying to think out possibilities that could back fire on me or hurt my future as an entrepreneur.

I'll update this post as I think of more questions or new scenarios. Thank you for any help or insight you can provide!

Fund-raising Discount Cards

Has anyone ever agreed to put your business on one of those Discount Cards that people sell for fund-raising efforts? Where you buy the card and you get small discounts at a bunch of different local businesses?

I'm wondering if it actually draws in new business, or if it just ends up in the hands of the locals who were coming to you anyway but now they're getting 10% off. Does anyone have a reason to think it's a good idea?