Accounting: Financial Frauds to Avoid

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.