If you're doing your bookkeeping, you're more likely to be inaccurate
If you hired an inexperienced bookkeeper who is not an accountant then the business owner's books will be inaccurate.
For example, bank reconciliation. What bank reconciliation does is to match every transaction according to the bank/credit card statement to prevent duplicating your transactions or missing transactions whenever you reconcile.
Even if you have accurate financials, you may still not understand your financial statements or your numbers.
- The best option is to hire an accountant to help you understand your finances.
- When hiring an accountant, make sure they talk to you and help you understand your numbers so you can prepare for the future.
If you don't have accurate financials and don't understand your financials, then how can you plan?
How would you be able to budget, forecast, and make better business decisions?
- Inexperienced accountants often don't plan for you, rather they often just hand you your books and be done with it.
With all of these in mind, it is important to never ignore your books nor should you do it yourself, especially if you do not know what you're doing or looking at. If you have an accountant doing your books, for you to plan for your business to prosper and grow, you need to make sure your books are accurate and understandable to help you reach your goals. These three rules are the holy trinity to make your business successful. An accountant that does not follow either of these rules will only leave you clueless to what is going on in your business. Just like your business, your books are important and vital. If you try to do it yourself to save money, it will only cost you more time and money in fixing your books.
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