We’ve all watched old TV programs featuring a small business owner. At some point someone needs cash for ice cream and old dad, the proprietor, hits the “No Sale” key on the upright NCR cash register, the drawer dings open and he takes out some bills for the kids.
Sure, this is (or was) real life. But if you are raiding the till of your family-owned business for personal spending money, you might be in or are in more trouble than you know.
Treating your company’s cash as your own is financial suicide. By removing cash in an unaccountable fashion, you are setting yourself up for an accounting and bookkeeping Armageddon.
Whether you are a sole proprietorship, an LLC, or an S- or C-Corp, accountability for expenses, particularly cash, is critical. Especially in the last three types: you have to answer to either yourself, your partners and/or your CFO.
For more on how to develop and implement an overall financial strategy, call or write to us. TFO Solutions is dedicated to helping entrepreneurs and business owners with their finances from the back office to the boardroom.
The TFO Team
(photos courtesy of Upsplash)