Hi Harry

My suggestion would be to firstly have a chat to your accountant. He/she would be able to identify if any funds are missing and how it went missing. This will give you a foot to stand on (proof) when you confront your partner.

Options there-after vary: Partner might pay back the funds or you might have to take matters further, depending on the situation.

Good luck and keep us posted.

Kind regards,
------------------------
Tiana
Energy Wizardry
http://www.linkedin.com/in/tianawilsonbuys

Either way, once you have your evidence, I would suggest calling a Board Meeting and ensure the discussion is well documented. If he agrees to pay the money back this should be documented too.

It is likely that there has been other irresponsible (trans)actions going on, and so you should ensure you can protect your interests by removing this gentleman if it was needed. To do this you'll need documentary evidence.

Thanks
------------------------
Director of http://www.vubasupplies.co.uk

Harry,

This sort of thing is easily fixed in the accounts, so long as its identified and highlighted. It *may* be that these amounts have already been treated as 'drawings' in the accounts by your accountant, so be sure of all of your facts as it may be that they just used the wrong purchase card etc and its all sorted out.

I would get a copy of the invoices in question and just ask the straight question "what are these for?". And if they are for the other business, ask "so how have they been treated in the accounts?" and go from there....they might think they have done nothing wrong if its been treated as their drawings, although it of course needs to be agreed by you if they are going to do this sort of thing.

Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk

---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT