Belk On Business

Money Handling Mistakes – Belk on Business – Episode 185 There are many mistakes a business owner can and does make, some which could be fatal to the business either directly through mismanagement of the finances or indirectly through failure to follow proper internal controls or following basics of asset protection. 1) Co-mingling of business and personal finances – this goes beyond paying personal bills with the business checkbook but can pierce the corporate veil. - Asset protection issues – creates a risk exposure - Internal control issues – creates a risk with banks and regulators - Loss of self confidence and confidence others have in you - Decreased business value – don’t know true business performance whether it is paying personal bills and trying to expense them in the business or pulling cash out of the business beyond payroll and properly determined and documented distributions 2) Mismanagement of debt – debt stress tests the business and will magnify any other financial mismanagement mistakes -