Accounting & Bookkeeping & Small Business Forum

[Guest]

Hey I just would like to know if some of you have the same expirience.

I have some clients that although I tried hard to make them to follow the rules so i can prepare the books corectly they not always do what I say. for example there are some that keep paying some of their employee as a contract labor and honestly they should be conseidered employees 1099 vs w-2. I think even some of them don't report the true on the amount of sales. Others there is no way that I can do the bank reconcialiation because they have have misxed the bank account for business and personal issues.
I am just wondering if you guys have got the same experience as me and if we as bookkeepers are liables for some of this is an audit happen.
thanks for sharing your comments

[Guest]

It really depends on the situation. When a client runs both personal and business items through
the same bank account, there is nothing wrong with that as long as the business is a proprietorship. But it can also make it a mess for you to do the work, especially if there are a lot of transactions and they don't make it clear what they are for and if they are personal and business. This may just be a matter of whether the amount of work you do is too much for what they are willing to pay. You might also be uncomfortable with the results, even if there is no bad intent. Your decision here is whether the client is worth the trouble and uncertainty you feel.
When they are intentionally trying to get around laws, such as reporting employees as contractors or perhaps trying to deduct personal expenses, etc., my advice in general would be to imform them of the rules, then drop them as clients as soon as possible. Avoid working with dishonest people. There can be liability for you, and your reputation can be affected.

Terry