Don’t Like Accounting?
You will never be an integral participant of a community when you do not know the language of the community. Accounting is the language of business. If you are in business, you have a responsibility to become competent and conversational in accounting.
Here are some of the many problems that arise when you do not place emphasis on accurate accounting:
- It undermines your credibility as a business person. There have been many times where I am excited to be talking with a business owner, excited about their business, and the owner then says something that reveals an ignorance or very shallow understanding of a basic accounting concept. Suddenly, it makes me question their knowledge and competency in business generally.
- Lack of accurate measurement can lead to fatal errors. If your accounting isn’t accurate and you don’t really know how your business is doing, you are tempting fate. You have a responsibility to yourself, your employees, your customers, and your investors to present an accurate picture of your business.
- Misrepresentations, even when unintentional, never lead to good outcomes. Once, a business owner gave me financial statements that had 11 months of revenue and 10 months of expenses. Some business owners mislead themselves, through a mix of hope and lack of understanding, into making accounting errors. When these numbers are provided to external parties, it leads to wasted effort, broken dreams, lack of credibility, and people wondering if it was a lack of understanding or something more sinister.