If you are running a business, never forget to inspect your
accounting activities. Accounting is crucial because it allows regulators to
ensure the quality and consistency of your businesses. It is highly important that
you identify the following activities from your accountants before it is too
late.
1.
Sales Revenue
All sales revenue must be reported and none of them should
fall short from your list. Regulators will need to see all your sales revenue
to ensure your tax deductibles are fairly distributed.
2.
Personal Expenses
Any undeclared personal expense that is not part of a
business is considered illegal accounting. Even if you do not intend to,
regulators will fine your company or bring a lawsuit if you include you or your
employee’s personal expenses off the record and agreement with authorities.
3.
Kickbacks
Similar to the case of GlaxoSmithKline in China, getting
kickbacks by having professionals endorse your products in exchange for favors
or profit is illegal accounting. Businesses must also avoid accepting
endorsements from sub-standard suppliers to get a cut in sales.
4.
Mysterious Fees
As much as possible, identify that all your financing and
companies you are buying and selling from are properly named and identified on
your balance sheets. Adding mysterious fees and illegal products in your roster
could mean trouble for you, your accountant and your business.
