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So explain to me why you thought it was an appropriate first Judgmental comment about hiding money from the spouse? If you see nothing wrong with what and how you provided that information, there is some serious issues at play.
So explain to me why you thought it was an appropriate first Judgmental comment about hiding money from the spouse? If you see nothing wrong with what and how you provided that information, there is some serious issues at play.
He takes his paycheck home.. he withdrawals $$ from it to store in the company as a savings account. Obviously this is something his wife doesn't know about bc if she did he would have a savings account that he would do the same as he does with the company. Right?
He takes his paycheck home.. he withdrawals $$ from it to store in the company as a savings account. Obviously this is something his wife doesn't know about bc if she did he would have a savings account that he would do the same as he does with the company. Right?
LOL
Quote:
Originally Posted by NYCresident2014
She cuts the checks. Sorry for using a general term, but she is clearly involved in the payroll process even if she isn't a CPA. Or perhaps she's new to the field- you can still be an accountant without having all of the answers. Just ask a brand new 22/23 year old at an accounting firm- they know next to nothing but are still "accountants". No need to be so mean about it.
As far as not asking people who would know the answers, she did exactly the right thing. Her first question was "hey, does this seem strange?". And she did it on an anonymous internet forum, so she didn't put her professional reputation at risk by raising a red flag where one may not be present. If the answers were different, such as "totally illegal you need to call a lawyer ASAP", perhaps her actions would be different.
As it stands, I commend her for her curiosity and for the way she handled it. If it's nothing more than mere curiosity, then the issue is done. If she chooses to investigate further, that's also her prerogative. And I reiterate- if I were hiring a person in charge of cutting checks, these are precisely the types of questions I want her to be thinking about, if not asking.
Why exactly is it your business what the owner of the company does with his money? It is generally a good idea to tend to your own job and stay out of the owners finances.
Exactly. This level of interest in things that are none of her business could mean she won't be working there much longer. Bad enough she's even paying attention to that which is none of her business, but she's talking about it openly on a forum, and probably among friends and family too. Which, many people do not not, signals to everyone that knows here that she's a gossip and sticks her nose into other people's business, and then talks about it. Probably wonders why no one trusts her.
If you actually did cut the checks you would already know what it is for. Mind your own finances and stay out of the finances of others. The Comptroller always knows what the check is for.
Location: In a little house on the prairie - literally
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Shareholder's Loan to the company. It may be banking requirement, it may be for later tax free withdrawal (he paid tax before as it came from his payroll check), or there could be a plethora of reasons.
The point is that as the SHL is being booked in the GL (OP, you didn't say which GL account), it's just no biggie. Nothing nefarious going on here. Trust me, I can think of a dozen ways to float funds through a company that are not this transparent, yet still be legit.
What is happening, the boss has two accounts after taxes. One is his pay check, the other is an account he can draw money against for personal use, or if needed he can loan to the company.
He as pointed out above, it can be his bank may require him to maintain a certain amount of funds, for any potential emergency use. This is very common, that your lenders may require a certain financial liquid account to cover slow periods. This is not unusual in any way.
It is just money he keeps liquid and when it reaches a certain point, he withdraws some of it for personal use. He is hiding nothing, but if business is down some month, he can draw on it for his paycheck, to loan to the company he owns, can draw from it if he has something he or his family needs/wants over what his paycheck covers. Think of it as a bonus account, and at certain times he will give himself a bonus.
When we owned our real estate brokerage company. We had a regular business account, that we paid all bills, expenses, and our personal income out of it. An escrow account, where we kept all funds that we were holding for others. A third account where we kept excess money that we could draw on anytime we wanted. Sometimes used to buy property with, sometimes we made personal withdrawals for personal use. And sometimes we transferred some to the business account when needed for some reason as a loan. This is how most privately owned businesses operate. You are seeing your boss do this kind of thing, and you simply cannot understand what he is doing. Unless he tells you, it is none of your business.
It is legally his money, and you say he has paid taxes on it. It is absolutely none of your business what he does with it. In fact you should be fired for questioning what he is doing, and putting his personal financial use of his own money on the Internet. The only one doing anything wrong is YOU.
This thread is closed. Personal attacks and off-topic comments have been deleted.
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