Can Business Accounts Be Frozen?

Business accounts are a vital part of conducting day-to-day operations. It would be virtually impossible for any business to conduct their operations without having separate business accounts that are set up specifically for certain departments or for particular tasks. For example, many businesses have separate accounts set up for the different departments that exist within a large corporation such as human resources or office supplies. Even small businesses should have a separate business account so that income and expenditures can be tracked successfully. In many cases small businesses will have at least two separate business accounts set up for separate things so that money that can be used as income is kept separate from money that must be put back into the business in one way or another.

Business accounts that are frozen can paralyse a business to the point that it is no longer able to function and must cease all operations. There are a number of reasons that business accounts could be frozen. In many cases it involves a situation where the business in question has misappropriated funds that should have gone to pay for accounts or to pay taxes. Having a problem with these accounts does not necessarily mean that the business has intentionally made an error on these accounts but it can prove to be a serious problem for the business because accounts that are frozen prevent the business from operating.

If business accounts are frozen so that a business can no longer order supplies from a particular vendor it is necessary for the business owner or manager to find out where the problem has occurred and how to remedy that problem as quickly as possible in order to get the account reopened. In the meantime it may be necessary to order supplies from another vendor.

In the more serious case that business accounts have been frozen due to a question about misappropriation of funds or a lack of payment for taxes all of the business accounts may be frozen. This is a serious situation, which requires immediate and thorough legal representation in order to discover where the problem has occurred and work with authorities to correct the situation. Frozen accounts almost always signal an ominous situation. Therefore, it is vitally important to carefully conduct business practices so that accounts will not be frozen to begin with.

If your business accounts have been frozen, contact us at www.bestlondonlawyers.co.uk. We can help.