What are the advantages and disadvantages of the fund?

Slush Fund is usually defined as a type of financial reserves that are maintained beyond the usual accounting line items, usually as a kind of general line item that can be used to monitor payday that is not suitable for other funds criteria. Businesses may have earmarked Slush funds to manage purchases that are outside the range of the basic operating budget, while individuals and families can use SLUSH funds for other expenditures that are beyond the usual household expenditure. The maintenance of the secret money fund and some potential obligations has several advantages, including the possibility that it cannot pay fund taxes and get into major problems with the tax agency.

When properly managed, several professionals are associated with the operation of the Slush fund. The fund can function as a means of cost management that is difficult to relate to specific budget line items. By maintaining additional money in the Slush Fund, it is still possible to take into account every purchase, even whenIt is somewhat difficult to classify this purchase. With this approach, there is no potential for money or purchases that should be considered from books, and therefore do not consider very few opportunities to notice transactions.

Since the money stored in the Slush fund is not required for the daily operation of an enterprise or household, resources can often be used for purposes that are beyond the budget. For example, a household can set up and maintain a fund for use when a family decides to take on the last holiday or a long weekend holiday or make some type of impulse purchase such as a new wide screen. Since the money is a fund, it is not earmarked for any specific purpose, the household can determine when and how to use the means. Similarly, Bussiness may decide to use the Slush Fund to finance participation in a business conference at the MessageDays for a while, even if the budget does not provide funds for this specific purpose.

with the maintenance and use of the Fund of Breaking is associated with several potential hazards. The temptation to keep extra money outside the books is always present. Assuming that the funds moved to the fund are already recorded as income and are included in the calculation of taxes, there may be no problem to maintain the fund outside the books. Unfortunately, hiding money can increase the chances of not paying the relevant taxes, a situation that eventually leads to fees and sanctions in discovering money. Depending on the amount found in the Slush Fund, this could initiate a full investigation of all aspects of financial accounting and damage the reputation of business.