By nature, remodelers are a hands-on group. But as companies grow, there's too much for just one person to handle; owners must give more responsibility to others. More than half of respondents have delegated production, bookkeeping, and payroll duties to employees. Some 32% have handed design over to someone else, and a quarter have passed along estimating and sales responsibilities.

All that adds up to a lot more risk. It's important that remodelers protect themselves from both the honest mistakes and fraudulent intentions of those with whom they share the work load.

More than 50% of respondents hadn't used a purchase order system:

If you haven't used a purchase order system, why not?

“We approach checks and balances in another manner.”

John Coburn, Bowers Construction, McLean, Va.

“I never looked into it and never gave it much thought.”

John Barrett, BLS Construction, Indianapolis

“The owner reviews and approves all purchases.”

Linda Olson, Loren Imhoff Homebuilder, Middleton, Wis.

“If I didn't buy it, then the employee must have a receipt.”

Larry Stangl, Gulf Hills Remodeling, Ocean Springs, Miss.

“With the accounting system we use, it'd be duplicating our efforts.”

Elaine Taylor, Taylored Restoration, Anchorage, Alaska

“It would require additional office support.”

William Shaw, Wm. Shaw & Assoc., Houston

“I have complete trust in my employees.”

Mario Cabrera, M.F. Cabrera, Inc., Miami Springs, Fla.

“Currently, my company isn't large enough to justify the use of POs.”

Mike Rasmussen, Nesco Construction, Las Vegas

Do you get background checks on all prospective hires?
Do you get background checks on all prospective hires?

How often do you check references before hiring someone?
How often do you check references before hiring someone?

Does a CPA or other financial professional perform an external review of the company's accounting records?
Does a CPA or other financial professional perform an external review of the company's accounting records?

Who fills out time sheets for field employees?
Who fills out time sheets for field employees?

Do company checks require an owner's signature?
Do company checks require an owner's signature?

Who is authorized to sign checks from the company bank account?
Who is authorized to sign checks from the company bank account?

Before paying vendors, who checks each invoice to make sure you're being billed correctly?
Before paying vendors, who checks each invoice to make sure you're being billed correctly?

How often are time sheets filled out?
How often are time sheets filled out?

Do you allow your employees to moonlight?
Do you allow your employees to moonlight?

Has any employee ever charged you for materials used on a side job or padded a time sheet with hours worked on a side job?
Has any employee ever charged you for materials used on a side job or padded a time sheet with hours worked on a side job?

When a materials order is delivered, who checks to make sure it's correct?
When a materials order is delivered, who checks to make sure it's correct?

Who checks completed estimates for errors and omissions before they are given to clients?
Who checks completed estimates for errors and omissions before they are given to clients?