Don't Believe Everything You See15th March 2017
They’d even tried to professionalise their accounting methods, buying the state-of-the-art Xero accounting platform.
The business owners, however, had no idea this was going wrong – and trusted the numbers they were given blindly. They made decisions about their business based on inaccurate information.
In recent blogs, I've run through some of the biggest but yet most common accounting mistakes that can happen in your business. This includes you, the owner, not properly understanding the difference between profit and cash; and your bookkeeper failing to take into account information they are not given, such as expenses.
Don’t believe everything your accounts seem to tell you.
Mistakes happen all the time – bad mistakes!
At Insight Associates, we never give our clients any financial information until we are certain everything has been done correctly.
You should hold your own accounting team to the same standards. Even if you hate dealing with numbers, you must ensure that there are systems in place, so that all accounts are up-to-date, complete, and verified. Ensure that whoever is dealing with your accounts understands the big picture of how your business operates, so that they can ask the right questions, notice what’s missing and when something doesn’t seem to make sense.
The truth is that larger companies have an advantage. They have the resources to put in place all the necessary systems to run their finances professionally. They rarely rely on one bookkeeper or accountant, but instead employ a variety of staff in their finance department with different skillsets, who can all double-check each other.
If you are a smaller company (turning over £1m-£10m) but would like the same kind of smooth, professional financial management a larger company takes for granted, let’s talk. With our outsourced finance department, you can get those exact same systems, team and knowledge -right now!