Business owners, one of the BIGGEST mistakes that business owners make, and this is very common in small business, is running personal expenses through their business account. Failure to separate your personal and your business payments, income and other matters opens the door for litigation against your personal assets.
With any litigation matter, even if you are innocent, failure to have good boundaries with your money matters will give the opposing attorney leverage against you. Now obviously this is not pure legal advice and you should consult your attorney on performing an audit of your current business matters. Remember, your accountant will only give you valid advice on matters of taxation of the Federal Government and the State Government. Don’t make the mistake of using your accountant for legal advice from those of us who have learned the hard way.
