[Anonymous]

If an employer makes no real effort to personally pay for their clearly personal purchases (charges are made to a credit card), but instead runs them through the business and adds them to the income statement as legit expenses, how would you handle this? The situation has already been verbally discussed with them…but the situation continues. It’s a small company not subject to a regular audit – so would you insist they cut a personal check for those charges (I can’t MAKE them cut a personal check) or would you make a special account (i.e., SUSPECTED NON-BUSINESS EXPENSES) and just dump everything into that account? We’re talking about $1,000 per month or so in a business that has operated at a loss for the last several years. I’m not willing to compromise my license for this kind of irresponsible behavior.

[Anonymous]

SFLocal~bosses wife.

Also, I don't think they are interested in an S-corp so I need to deal with this issue as a C-corp. It's like pandora's box…the more I dig the more I find…we're up to about $2k per month right now…all cash I need for company cash flow purposes.

For me, the issue is company profitability and cash flow. For them personally, I think the issue is cash flow. If I put this as an A/R due from the owner, it still hurts company cash flow. Since I'm the only one who gets to answer to the vendors as to why they haven't gotten paid in a while, it seems the owner(s) don't care about company cash flow…only about their own (personal cash flow).

[impska]

REG - 94
BEC - 92
FAR - 92
AUD - 99

[impska]

REG - 94
BEC - 92
FAR - 92
AUD - 99

[jasonrobbins]

Guys, this happens all the time in small businesses. If they are not legitimate business expenses, just write an e-mail to him/her that you think these should be classified as personal expenses. If it comes up in an audit, s/he will just have to pay tax on these expenses since it would be treated as income to the owner.

You wouldn't lose your license over this if you have made an effort to tell him that you think they are not business related…

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[jasonrobbins]

Guys, this happens all the time in small businesses. If they are not legitimate business expenses, just write an e-mail to him/her that you think these should be classified as personal expenses. If it comes up in an audit, s/he will just have to pay tax on these expenses since it would be treated as income to the owner.

You wouldn't lose your license over this if you have made an effort to tell him that you think they are not business related…

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[Author]

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