“There are standard accounting practices.I’m aware with a company like Rustic that the normal categories might not work, but in theory there is nothing to stop them from creating their own.A lot of items seemed to get thrown into the miscellaneous category and aren’t itemized, which doesn’t allow you to see what is selling and what isn’t.If they rent out the equipment to others, like they do here, then how do they know what comes back to them and in what condition?”
“In our contracts with them, we have it spelled out in full detail what we’re renting, and we enclose a copy of that contract when we return the equipment,” Josh said.
“Okay.But let’s say you order three spanking benches, a cross, and two of the bondage chairs, and the fee is five thousand.On our end, those would be itemized out so we know the cost on each.For example: they are not all going to cost the same, it would depend on how long they’ve been in service, how long they’re being rented for, and things like that.Details are important in accounting.”
Josh sat back in his seat.“That makes sense.”He glanced at me.
Lucas tapped the conference table.“This is why I wanted to bring a forensic accountant onboard.I know our company inside and out.The owner and accountant at Rustic Designs don’t seem as informed.This kind of shoddy accounting worries me.”
John leaned forward.“Does this give you any insight to their books?”
That was the thousand-dollar question.I hoped Valerie knew the answer because I didn’t.
“A little bit.It’s been difficult due to them not categorizing to what I consider standard.At least their normal expenses seem to pan out.”
“Normal?”Josh asked.
“Things like rent, utilities, stuff like that.”Valerie glanced around the table.“Is there any way I can see the contracts for the equipment?It would help me sort out that miscellaneous category Rustic has.”
Josh looked startled, and Dean flinched.
“Is that going to be a problem?”she asked.
Miles cleared his throat.“Not from an HR perspective.”
“We have to protect our clients,” Cassie chimed in.
“I have signed an NDA, but I can appreciate your level of client care.Aren’t the contracts between Fantasies, Inc.and Rustic?”
“They are,” I commented.“But we should be fine.We use client ID numbers.”
“That’s true,” Josh commented.“And Rustic wouldn’t see that ID, it’s only on our side
“Then we should be good, right?”She tapped a finger against her cheek.
Josh and Dean looked at each other.“Which contracts would you like first?”Josh asked.
“Right now, I haven’t gone further back than a year, so let’s pick a month and start there.It will give me a basis if I have to go further or not.”
Josh and Dean talked quietly to each other.“I think we can have you some of those contracts by mid-week next week.We have to make sure any client identifiers except for the ID numbers has been redacted.Will that work?”
“Yes.”
Valerie sighed.Had she been worried?I wasn’t.Josh and Dean would find a way to make it happen.They wanted this sale to go through to make things easier for them and clean up any issues with the equipment.
“Sounds like a plan,” John said.“I understand all equipment we get from Rustic is inspected and tested before we use it with a client.If their work is shoddy, this should catch it.So keep it up.”
Everyone nodded.John rose, said goodbye, and left the room.
“I’ll go through the customer service records to see if we’ve had any complaints.Off the top of my head, I don’t remember any,” Cassie said.
“There shouldn’t be any.If we encounter an issue, we replace the piece right away.We don’t use it, so most issues with the quality of a particular piece wouldn’t make it as far as customer service,” Josh mentioned.
“I’ll still check the after-service survey we send out.It might not have been a formal complaint, but there may be something there.”
“Makes sense,” I said.“Also, we need to keep better communications when we find faulty equipment.”
“Agreed,” Dean replied.
