By Brian E. Ravencraft, CPA, CGMA, Partner at Holbrook & Manter, CPAs
It can happen for a number of reasons, a business owner mixes the funds for their business with their personal finances. Especially during these trying times, it can be easy to let those funds intermingle. But the can of worms this can open is usually not worth the short-term fix this practice can offer. I asked some of the members of our Business Services & Solutions Team at Holbrook & Manter to weigh in on the following prompt: Explain the dangers a business owner faces by mixing personal funds with the funds for their business.
Read their responses and tips below.
When a small business owner comingles their personal funds and their business funds, accounting for the business can be difficult and sloppy. This often leads to business financials incorporating personal expenses or excluding business expenses, which then portrays an inaccurate financial position of the company.… Continue readingRead More »