Kiting

Definition

The illegal act of writing checks for amounts exceeding an account balance, using other accounts.

Example

A business may encounter this when reviewing its accounting records, financial reports, operating decisions, or management dashboards.

How to Think About It

Considered fraud and illegal.

Plain-English Meaning

In plain English, Kiting is part of the financial structure that helps a company understand what is happening, what it owns, what it owes, or what needs attention.

Why It Matters

Kiting matters because companies make better decisions when the underlying accounting and financial structure is clear, consistent, and reviewed.

Common Issues Businesses See

• The term is recorded or interpreted differently by different people.
• The underlying account, report, or workflow is not reviewed regularly.
• The number exists in the accounting system but is not decision-ready.
• Leadership gets the report without the operating context behind it.

What Good Looks Like

• Clear definitions.
• Clean accounting records.
• Consistent reporting rhythm.
• Leadership can explain what the number means and what action it requires.

How Accounting Your Life Helps

Accounting Your Life helps companies clean up the structure behind Kiting: the accounts, reports, ownership, cadence, controls, and management review needed to make the information useful.