A good example for the misuse of business expenses is the recent UK political Scandal. This scandal diminished the peoples trust in the existing political system and gave rise to the term, “Rotten Parliament” events like these make you wonder about the current state of politics. If politicians can’t set an example, I don’t think that the common people who own small businesses are going to be all that different. People who lease cars don’t think that it will be worth the cost but obtaining finance for a car shows to be a greater expense as compared to leasing a car.

Most business people who disguise personal expenses as business expenses are likely to get caught at some point of time although it might seem like fun and games at first there is always a catch which might be seen and caught by a suspecting IRS official. If business and personal expenses some how get mixed up the right thing to do is calculate the percentage spent on personal gain and the amount that was legitimately spent for the business, the amount that was legitimately spent on the business can be rightfully claimed by the employee.

If you are on the look out to cut your costs and increase profit, hire a good analyst who can show you where you can increase your productivity in business to maximize your profit.