There’s a lot of law revolving around just how we all use our money. We might not think about it that often, which can lead us to make some mistakes that might seem negligible in the moment. Those mistakes can come back to haunt us, however. Not just through bad financial control but through real legal ramifications.
Don’t sign everything that comes your way
We need to start by being more careful about the responsibilities we take regarding the finances of the people around us. You already know that co-signing a law needs careful consideration because if the other signer can’t pay, it can get you in debt and force you to fight your own financial trouble. Before we sign anything that makes us responsible for another, let’s ensure we can a) reasonably expect them to be able to take care of it and b) have the money in place if our responsibility is called upon.
The misuse of money
We don’t all only have our personal finances to be concerned with, either. We might be in charge of a business, we might handle an employee’s money, and we might be in a position of controlling the money of a trust. Misusing that money is going to have you in need of an embezzlement lawyer very shortly. Mistakes can’t be abided, so make you handle all different areas of your financial responsibility separately. Stay away from trust and employer money and separate your own personal from your own business finances.
When bookkeeping goes bad
Bad bookkeeping is a crime. This isn’t just true if you manipulate the numbers. Any mistakes that you make with your bookkeeping can build up until it looks like you have manipulated them anyway. The charges that can come when bad bookkeeping is discovered can range from the aforementioned embezzlement to fraud and attempts at tax evasion. Make sure you take a thorough look into the practices and the ethics policies of any accountants working with your business or any bookkeeping practices that other employees engage in. You might not be held personally responsible for their own mistakes, but it will save you a lot of hassle to avoid them anyway.
When you can’t pay
If you have employees or you hire contractors, you have a responsibility to pay them as to the letter of your agreement with them. But money problems that impact the business can get in the way. Sometimes, business owners simply don’t have a system well enough organized to ensure that the people who need to get paid are paid. Sometimes, you might not be fully up-to-date on sick, holiday, or overtime pay. When that happens, you’re breaking employment law. That can be grounds for a lawsuit.
There are a lot of reasons to be a bit wiser with how we use our money. Staying legally clean is probably the best reason there is, however. Getting in legal trouble can affect your whole future, not just the financial portion of it. Let’s all exercise a little more diligence.