Off the books definition
/What is Off the Books?
Off the books refers to any cash payment or receipt that is not recorded in a firm’s accounting records. This is typically done in order to avoid paying income taxes on cash receipts or use taxes or payroll taxes on payments made. Off the books transactions are especially common when an employer pays undocumented immigrant workers, who could not otherwise work for the firm. This approach is also used when engaged in illegal transactions. Off the books transactions are most common in a grey economy, which includes any economic activity that is legal, but which is unrecorded and unregulated.