Commingling of Funds: Oh What a Tangled Web We Weave...

"Oh what a tangled web we weave, when first we practice to deceive!" is a quote from a little known poem by Sir Walter Scott. In short it refers to the effects of lying. Often, one lie leads to more, similar to how a spider weaves a web; and as the lies multiply, the web becomes more and more tangled creating a trap of dishonesty. If business owners and managers of nonprofits are honest with themselves and their bookkeeper, there is little chance of being trapped by dishonest books. Sometimes, we may not even understand or intend to deceive, but it may be perceived when commingling personal and business funds. And, the results can be devastating!

Merriam Webster dictionary defines commingle as "to blend thoroughly into a harmonious whole." If you read this definition with no financial background whatsoever, you will understand the commingling of personal and business expenses as blending two very distinct things into one "harmonious whole." For the small business and non-profit alike this can bring your bookkeeper to their knees. Hours and hours of sorting things out, multiple questions about each and every expense, unnecessary journal entries, and the extra scrutiny of an auditor when they encounter it in the books. ​

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