We are going into our fourth year in business (WHAT?!) and it is our busiest time of year. So why am I taking some time to write a post? Because I am seeing a trend out there – more so than ever – now that I have seen how certain situations play out. I don’t know everything about business and what it takes financially and from a financial literacy standpoint, but I have seen a few hundred or so companies that we have been lucky enough to help, and not help, and what makes them different from each other. The one trend that I see most often – that people think that professional accounting services are expensive, and maybe they should use their resources in other ways instead. We, of course, are there to help business owners in whatever capacity we can, and completely understand that money is valuable and needs to be allocated judiciously to every expense, especially in the early days of running a business. And, we see that when business owners choose not to spend any money, or spend money as least expensively as possibly, on accounting, they tend to fail in a few important ways. First, they are not sure what their true financial position is. Second, they struggle with deadlines and upcoming cash flows. Third, they aren’t able to forecast a vision that isn’t miserable for themselves. The business owners that we see that invest in their finance function do not show these three trends. Instead, they know where they are, they are not worried about the immediate term needs, and they are on a clear path to success as they have defined it.
It comes into glaring daylight this time of year every year. Those who were on a stable path with their accountant all year are all set this time of year. Those who cut corners, chose “cheap”, or didn’t choose anything, are struggling to catch up. Which scenario would you rather feel your business in?
