Augusta
VIP Contributor
Neglecting necessary reporting of a business comes with its bad effects on a business. The facts remains that businesses need to always record all financial transactions. Necessary items that need adequate reporting includes sales, expenses and earnings. Not doing this comes with its bad sides for the business.
So what are the bad effects of inadequate financial reporting to a business
Payment of fines
The truth is that companies not keeping the right information on finance of their business can be made to pay fines as the report of their financial data might be. needed by the government or other corporate authorises if they can't be provided adequately there might be the penalty of fine payment.
High interest charge
A poor record keeping by businesses can lead to serious problems. Companies and businesses will always want to borrow money from banks and other financial institutions. The lenders will always want to see the business financial records without an adequate information showing the real financial position of the business due to insufficient reporting, the bank might still charged high interest on their borrowed money.
Jail term
Misstating revenue on tax forms and improper deductions can bring about a jail. term penalty. This is because accurate reporting is important when filing tax forms needed by taxing authorities—
So what are the bad effects of inadequate financial reporting to a business
Payment of fines
The truth is that companies not keeping the right information on finance of their business can be made to pay fines as the report of their financial data might be. needed by the government or other corporate authorises if they can't be provided adequately there might be the penalty of fine payment.
High interest charge
A poor record keeping by businesses can lead to serious problems. Companies and businesses will always want to borrow money from banks and other financial institutions. The lenders will always want to see the business financial records without an adequate information showing the real financial position of the business due to insufficient reporting, the bank might still charged high interest on their borrowed money.
Jail term
Misstating revenue on tax forms and improper deductions can bring about a jail. term penalty. This is because accurate reporting is important when filing tax forms needed by taxing authorities—