Warning: Parameter 2 to ux_builder_post_search() expected to be a reference, value given in /home/customer/www/hindsight.city/public_html/wp-includes/class-wp-hook.php on line 303
Managing Money: 3 Things to Watch For – HindSight

Managing Money: 3 Things to Watch For

When you?re running a business, it is essential to make sure that you check your profits regularly and that your numbers add up. Otherwise, you could be charged with money laundering and end up losing your business. To prevent this and other negative consequences, here are some questions to ask yourself about the finances of your business.

Do the Numbers Make Sense?

When going over your financial reports, it is essential to ensure that the numbers make sense. If not, it could be a sign of a scam, a miscalculation, or neglect. Unfortunately, many business managers become so focused on client satisfaction that they fail to include the business side of things. When it comes to that, profit is the bottom line.

It is essential to check your business report on a monthly basis because you need to see whether your business? net income is trending upward, downward, or staying the same. A change in prices also makes a huge difference. That?s why if you work more but are paid less, your numbers could still go down, making it essential for businesses to increase their prices sooner or later.

Where Does the Money Come From?

Unfortunately, money laundering is an ever-evolving crime. Even worse, legitimate businesses are unknowingly acting as middlemen in the layering phase of laundering in support of illegal activities. The possibility of being charged with money laundering still exists even if you were unaware of where the money came from.

Money laundering is the deliberate concealment of funds illegally obtained. It works by being exchanged in complicated transactions set up to deliberately confuse anyone who might try to trace it. Since money laundering is a very complicated crime, it?s essential that you hire an attorney before your business launches.

How Can I Protect the Business from Money Laundering?

First and foremost, always avoid sharing financial or personal information with someone you don?t know. While this is a very important practice, it’s not the only safeguard you should have in place. For example, many modern businesses rely on anti-laundering software programs for financial security.  Also, many businesses choose not to allow clients to have more than one account; however, cybercriminals are often talented at creating multiples.

The best way to prevent inadvertent laundering, however, is to know your customers and educate your employees about current money laundering techniques. Never be afraid to investigate if a customer makes a particularly large cash purchase from your company or uses prepaid cards. Some people simply hate banks and believe in mattress cash. Criminals, on the other hand, use cash and prepaid cards because they?re anonymous and don?t believe that they will be traced back to them.

Your business is a precious asset that must be carefully protected. Money laundering is a very unfair crime and could fall on your shoulders if you don?t keep your business protected. If it does, you could lose the business and be the one charged with a crime.

Are you interested in more content and tips on how to run your own business? Check out our interviews and our articles for more great advice!

Leave a Reply

Your email address will not be published. Required fields are marked *