In this episode of Your Director’s Advocate, James Flaherty and Cheryl Stainsby welcome back bookkeeper Kirsten Carter from Mello Bookkeeping to tackle one of the most common headaches for small businesses: director loans. Why do they happen so often, and why do they create such massive problems down the track? From directors accidentally using company funds for personal expenses to ignoring their bookkeeper’s emails, this conversation dives into how simple oversights can snowball into tax liabilities, cash shortages, and compliance issues. Kirsten shares first-hand insights into how bookkeepers handle missing receipts, misclassified expenses, and cash flow mismanagement—and why communication is the key to avoiding disaster. If you’re a director who’s ever “borrowed” from your business without thinking about the consequences, this episode is a must-listen. Packed with practical advice, real-world examples, and candid humour, it’s your roadmap to keeping your business—and your cash flow—on track.