Merchant Cash Advance Accounting Pitfalls

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This is question #5 in an interview between deBanked’s Sean Murray and accountants Yoel Wagschal, CPA and Christina Joy Tharp.

Q: Are there any pitfalls for ISOs or funders in the industry with how they run their books? Big no-nos, etc?

A: Here are some of the most common pitfalls we have seen:

  • Don’t think of this as a loan – that’s a huge pitfall that we have experienced firsthand (get rid of that word!)
  • Don’t have your CFO be one of your syndicators. This inevitably creates multiple conflict of interest issues.
  • The biggest no-no – don’t rely solely on spreadsheets! You need a good accounting system that will cross reference and reconcile your accounts. It needs to track and present your cash activity and it should ultimately provide you with your crucial reports. Basically, it needs to accomplish all of the trifecta in question #1.


This interview was done with Yoel Wagschal CPA and his staff accountant Christina Tharp. They can be reached at:

Phone (845) 875-6030
Fax (845) 678-3574
Email: cjt@ywcpa.com
http://ywcpa.com


Please consult with an accountant to assess your particular situation and needs.

Last modified: May 25, 2016
Sean Murray


Category: merchant cash advance

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