I asked the question before, but never received an answer. If I'm running a company and I take payment from customer A (of which there will be a bank record of) and use it to pay Jose and hose B, how am I able to account for the missing funds that go under the table to the accountant or the IRS?    Currently I work abroad, and I'll tell you that we have to account for every last penny here. If we don't it is viewed as a realized profit and taxes are charged accordingly.