On the advice of a CPA a farmer hired his wife who had worked on the family farm for years without pay. All the farm and personal expenses were paid from the same joint checking account (this is called co-mingling of funds). The rational for suddenly hiring his wife and [...] Read more »
Business Owners: How To Avoid Getting Audited
Tax Audit. Those two words strike fear in the hearts of many taxpayers. but as with many things an ounce of prevention is worth a pound of cure. Here are 7 tips to avoid getting audited. 1. Keep good records — include details for income, expenses, debts and deductions and [...] Read more »
Fraudulent Charge Detection: Another Reason Commingling is Bad
Commingling of funds is bad. What is commingling? It means that you are treating the business’s funds as your own. For purposes of this discussion I am talking business/owner mixing of funds, but it can apply to the Business/Client relationship or the Fiduciary/Client relationship as well. Examples of commingling of funds: Depositing [...] Read more »