Businesses large and small often share one thing in common. Many companies use banking services as part of their operation. These services include handling payments from customers, accounts payable and investing or loan servicing. These relationships have been a cornerstone of the capitalist system throughout history.
During business operations problems arise because of conflict with customers, suppliers or taxing authorities. Sometimes these conflicts take the form of litigation between parties and the legal system gets involved. At times, aÂ financial expert witnessÂ is employed to help sort out the difficulties. These issues typically arise over three areas of business operations.
Customer Business Conflicts
Disagreements over what was promised at the time a transaction took place are common. Many of these areÂ settled before involving the legal system. If the amount of money in question is quite large though, litigation may ensue.Â Conversely, if a customer refuses to pay for goods or services for some reason the business may have to resort to legal means to recover their rightful payments.
Supplier Business Conflicts
Timely payments or quality issues make up these problems. Suppliers often ship goods to a business and invoice the business for payment within 30 days. Disruptions in business operations may interfere with a companyâ€™s ability to conduct transactions with customers and adequately profit to pay for the goods supplied in a timely manner. Alternatively, if a supplier delivers goods that do not meet quality standards specified by the business, payment conflicts may emerge.
Taxing Authority Business Conflicts
Payment of taxes to a government authority is part of the cost of doing business. Generally, conflicts that occur here are over the way a businessÂ calculates its taxable income. Complex tax legislation and accounting practices used by businesses often result in these kinds of problems. These are the kinds of issues most commonly requiring outside assistance from experts.
The business world is in some ways a reflection of the web of relationships in other human affairs. Conflicts arising over money are very much like the conflicts that occur in these relationships. Fortunately, a system of laws and tools for sorting out and solving these problems exists and is available for parties engaged in commerce