Cash 2 in companies: 8 great reasons not to fall into this trap

Cash 2 in companies: 8 great reasons not to fall into this trap

Cash flow in companies may seem, at first, to be an excellent way to make your company more profitable. However, it is a bad business and can land the owner in jail. The term slush fund became popular in The reason? The accusations of corruption that, investigated by Operation Lava Jato, were confirmed. In this context, parallel cash was used to remunerate favors between companies, parties and politicians. However, this practice is not only present at the highest levels of politics: throughout Brazil, many businesses – large and small – carry out parallel accounting . Most people think they are very intelligent for cheating the tax authorities, paying less taxes than they really owe and making more profits at least in the short term. Sound like a great deal? That’s where you’re wrong: whether in the political or business world, slush funds are bad business .

What is slush fund in companies?

The issue is not only ethical, but also operational. Do you want to know how practicing parallel accounting harms your small business? Keep reading! Click to go straight to the topic that interests you: Cash 2 in companies is a crime Cashier 2 in companies can incur fines – or even arrest the owners The tax authorities are increasingly Netherlands Phone Number Data paying attention to slush funds The practice makes your company’s financial planning difficult You could end up getting reported by your own accountant Cashier 2 in companies opens the door to embezzlement committed by employees You will have problems hiring a management system You may lose important customers What is slush fund in companies? In the context of companies, creating a slush fund means creating and managing accounting parallel to the official one.

Cash in companies is a crime

In practice, the company does not issue an invoice, that is, it does not inform the tax authorities about the sale. Therefore, the corresponding taxes are not charged. There are also businesses that only record part of the sale and that. Divert a portion of the value to slush funds. Thus, this amount goes to parallel slush funds and no taxes are New Zealand Phone Number List agreement with the customer so that only R$400 appears on the invoice. The remaining R$100 is diverted to slush fund 2, and the respective taxes are not collected. Sounds like a great idea? Believe me, it’s not – and we can prove it. Check out: 1. Cash in companies is a crime slush fund in companies When discovered, a business owner who uses slush funds may even be arrested.