Etini
Valued Contributor
One of the principles I have adopted in my business is to stay off anything that has to do with financial matters. I let a particular staff that was employed for managing finances to handle the financial matters. I strictly focus on management. I think there are two reasons why this approach is beneficial to a business finances.
1) Accountability: When you as a boss starts handling finances, you might not be able to demonstrate accountability to how money comes in and goes out. You would not be able to keep proper records unless your business is that tiny. As a business owner, you have so many things to fix and you would always forget to record how funds are spent.
2) Distinction between business funds and personal funds: When a business owner only approves funds but doesn't handle them, there would be less propensity of spending business funds on personal uses. That keeps the business in a strong financial position always.
1) Accountability: When you as a boss starts handling finances, you might not be able to demonstrate accountability to how money comes in and goes out. You would not be able to keep proper records unless your business is that tiny. As a business owner, you have so many things to fix and you would always forget to record how funds are spent.
2) Distinction between business funds and personal funds: When a business owner only approves funds but doesn't handle them, there would be less propensity of spending business funds on personal uses. That keeps the business in a strong financial position always.