Related Posts
Bowl Leader
Who here is in NYC? 🙌
Subject Expert
Additional Posts in Accounting
Advice needed - boyfriend has almost 3.5 years of finance experience at a bank. Interviewed for PwC valuation senior associate and now recruiter says they want to hire him at “experienced associate” because he has no valuation experience. Is this too big of a step backwards in career? Should he push back and see if it gets him anywhere? If he does accept Associate, is it reasonable to ask for written, definitive timeline (1 year?) for promo to Senior upon meeting standards? Help!
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
100% of the time
It is very common but depends on the type of personal expense, travel is a big one as you can mix personal and business travel easily. The thing is, some people go overboard on expensing personal expenses to the point it can't be justified, and that's where problems occur.
Significant is determined by the IRS and State tax authorities and what they are willing to go after you for. You don't need to submit receipts with your taxes but you need to keep them for I believe 3 years (IRS) as you can be audited and you will need to provide them to support your expense claims as part of the audit.
I have an LLC and work thru that, the main benefit of doing it thru an independent llc vs W2 is precisely this. But ofcourse cant go overboard, has to be reasonable “client”expenses
This is a gray area of what different people consider "reasonable." Many executives and business owners are more aggressive on this and take the risk of the IRS disagreeing with them if an audit ever occurred. I don't agree with some of the stuff my current owner/managing partner does but it's his choice so I record it as instructed. He took a "workcation" with his family where he rented a ski cabin and worked every other day. Expensed the entire rental on the corporate card. I think that's dishonest but his call. If he works while visiting family he expenses the airfare to get there which is again something I would never advise but just an example of how this gets used.
So does your owner not get audited? How does he prove while filing his returns? Does he just state an amount that he is expensing?
All the time. Even when the company is having financial trouble. The owner would even tell me where he wanted the expenses reflected on the financials. Bonuses were based on the financials, which I could not see how the financials were even an accurate reflection of how the business was doing with all of the person expenses being paid through the business.