Bad accounting? Records are a mess? Well, it’s going to cost you. Yep, just like everything else in business there is an opportunity cost to doing things badly.
I am approached all the time and people ask me right off what it’s going to cost for us to do their accounting and I usually say “it depends”. That’s the normal response that most accountants give when there are so many variables that it would be impossible to quote on the spot.
My normal response of “it depends” actually does depend on how complex, detailed and streamlined you need your accounting to function but to be honest…. No matter the cost it’s still far less than the cost of bad records.
So what opportunities are you missing out on because of your seriously bad record keeping?
Well just for starters….
You are completely LOST. You may think you know where you are but you do not. Financial records in your head does not count. Banks don’t care and neither does the IRS. If you have to deal with either of these entities and all of us do (at least the IRS) and you don’t have it together then you are in trouble.
You have no opportunities to take advantage of vendor discounts because your invoices are shoved into some manila file folder stuck between customer files. You’re up to your ears in paper but you know where it is, right? Whatever. Pride of your filing system will not save you money.
Accounts Receivable…… what’s that? Ummm, that’s the file folder stuck in the vendor files remember? Those are the outstanding invoices that people still owe you. Are they 30, 60 or 90 days late? Who knows? You just have a stack of money sitting in that folder and no one is trying to collect. Just think about that for a minute. You value your services so much that you have told your customers they don’t have to pay you. What do you think will happen the next time they need a loan? You are on the list because you extend credit.
You think I am joking and over exaggerating but this is how some multi-million dollar businesses actually work. If I am talking to you then I am sorry for the harsh words but YOU HAVE TO WAKE UP!!!! Stop the madness or stubbornness! It’s not worth the cost.
Accounting systems are your best friend. Repeat that 10 times and then call me…… You can’t operate a business like a 14 year old manages their bedroom. Chaos is not helping you and you don’t know what’s going on……
Your accounting system (or lack of one) is costing you money. Use your money more wisely. Be a smart business owner.
If you need help getting your accounting in order give us a call. We turn bad accounting into good accounting.
