Four Red Flags Your Accountant Can Help You Identify

Red Flag Identify Accountant Business

Red Flags

Fixing a bad financial situation is something which happens gradually, it doesn’t happen overnight. And the same is true for how bad financial situations get created: every good accountant knows that financial downfalls occur over a period of time, and that there are typically signs which point to the downfall along the way.  This is why it’s important to have an accountant on your team to help you stay alert and take notice of any red flags which my show up within your business accounts.

Here are four red flags your accountant can help you identify:

Bad Spending Habits

When you have lots of money in the bank account it can be easy for you to adopt bad spending habits and not know it. You may spend a few dollars here and a few dollars there and eventually those few dollars can turn into a few hundred or even a few thousands. According to financial experts, most people’s bank accounts are impacted more by small multiple purchases as opposed to one large purchase. Your accountant can play a crucial role in helping you identify those purchases.

Decreasing Funds

If you haven’t grown accustomed to checking your business bank account on a consistent basis you may not immediately realize how quickly your finances can decrease. Having someone responsible for checking your account consistently will not only save you money but help you as you attempt to make more money as well.

Disappearing Money

When you’re first starting a new business it can become easy to have too many hands in the pot. Meaning you have lots of people who have access to your bank accounts, whether it be other employees or co-founders. In order to keep a handle on this, most accountants recommend simply getting rid of your debit cards, and once you do your accountant can more closely watch to make sure your money isn’t disappearing out of your bank account.

Fraudulent Activity

Thanks to modern day technology, fraudulent activity is on the rise and hiring an accountant who is up to speed on fraudulent activities and trends can easily help you identify fraudulent behavior when it occurs or can even stop it before it happens.

What red flags has your accountant helped you recognize? Leave your comments below.

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