According to CNBC 10k small businesses will feel the effects of the Wells Fargo scandal this past month. Out of the 563,433 credit card accounts that applications were submitted for 14,000 of those accounts incurred annual, interest, and overdraft fees totaling over $400,000. The CFPB has described this as widespread in a CNN Money article, with customers being charged for overdraft fees and insufficient fund fees due to the newly created accounts that they were unaware of.
An exclusive article by Reuters states “A person familiar with Vitter’s probe say Wells has identified about 10,000 small business accounts that were subject to improper practices. Vitter spokeswoman Cheyenne Klotz declined to comment on specifics about those practices”.
One of the hardest things to do as a business owner is build your business and stay on top of all your bookkeeping functions. So many of these small businesses could have avoided being caught up in the scandal by having an outsourced bookkeeping company like BooXkeeping.
When you have an outside bookkeeper, their primary function is to make sure your books are in order and any discrepancies are cleared up right away so situations like the Wells Fargo scandal won’t happen to a small business. Outsourced bookkeeping will streamline all of your process for you with daily, weekly,or monthly data entry someone is always looking at your financials, bank and card reconciliations, general ledger, accounts payable and accounts receivable helping maintain a healthy business, so that even when the slightest outpoint arises it can be pin-pointed and you can be protected against being taken advantage of and losing hundreds to thousands of dollars by simply not having enough time to do it all.
Hiring an outsourced bookkeeping team gives you expert level services for a the fraction of the cost that it could cost you to have your accountant clean up your books at year end and makes filing your taxes seamless when April rolls around, as everything that can be allocated will be done correctly saving you even more in the long run when it comes to business expenses.
If Wells Fargo is willing to risk their reputation, how many other banks are doing it on a smaller scale that has cost you money your not even aware of yet? For more information on how you can hire an outsourced bookkeeping service contact us today for a complimentary assessment with one of our chief bookkeeping officers.
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